Recently while surfing the internet, I came across this meme showing a group of friends who invested money to buy Real Estate.
I know, this concept is not new, there are all kinds of real estate investment clubs that will help you accomplish this. However, what stood out for me was the amount of money they put aside and their purpose. Living in an area that was prone to violence, they could have just fallen into the same cycle as those around them. Instead, they realized that something needed to change.
These young men are friends and had a trust factor that many may not have. There are ways to do this with perfect strangers. While at Scates Realty and Investments, we are not attorneys, we do know folks who play them on TV...and those who are in fact attorney’s in real life.
These young men had a plan, they established how much they would invest, a time period and the end goal which is to eventually own 1000 units. If you are going to establish an investment group, setting some boundaries is a great way to start. Setting proper expectations keeps issues at bay.
Establishing not just a business entity is something we at Scates Realty and Investments in Orlando would recommend but also having an exit strategy. Knowing ahead of time what the end goal is, helps eliminate conflict.
Making things legal puts everyone on the same page. Deciding on the long term plan and what you will invest in is also helpful. These types of groups don’t have to be limited to actual properties, it can be a group that purchases and sells tax liens. The group can designate that they only invest in specific types of real estate, perhaps they only buy single family homes or apartment complexes. It also needs to be established how rehabilitation of properties will be handled should the need arise, holding costs and taxes if the properties are not occupied with a tenant or purchased by a new owner.
Deciding to invest with others can open the door for a lot of questions but it can also open the door to increased wealth without as much risk. If you want to learn more about investing in real estate in the Orlando, Florida area, we are eager to help. Please Pop In The Pink Door or call us at 352-404-8960.