Posted by Ron M on August 14, 2006 at 03:49:43:
Considering your limited funds but your unlimited desire to be successful in real estate investing, you may want to consider joint venturing with someone else who has the bucks to fund more real estate deals. I act as such a person in my market partnering with other real estate investors who bring me profitable deals. On a number of occaisions I have put up all the money, they put in all the time and we come up with a fair split of the profits based on risk and effort. If you like to negotiate owner financing arrangements, this is even better as you can use your own money to cover closing costs, etc. and when that runs out, use your joint venture partners’ funds to keep on going.
Be sure to get an air-tight joint venture partnership agreement to use with most likely your LLC, which spells out all the details of your arrangement as well as who is responsible for what. Also, as the partner who isn’t bringing in the bucks, you may want to consult with a real estate attorney to advise you on how to secure your interest in each deal “prior to doing the deal”.
Happy Investing!
Ron M (WA)