Group Investing

One of the biggest challenges facing today’s investor is the skyrocketing value of available inventory.  This fact adversely affects the initial buy-in and the monthly mortgage making it cost prohibitive for most novice and many experienced investors from seizing opportunities alone.  We often hear complaints and comments that real estate investing is for the wealthy, especially for property in California.

One solution is the team approach to investing also referred to as “syndicating.”  The advantage here is that the cost of acquisition and operations are spread out between two or more Investors.  As a result, that $1.5 million office building you wanted to house your financial planning business or the 25-unit multi-family complex with a great cap rate suddenly become plausible realities.

The question is:  “How can I participate?”

Before you jump into the next opportunity that comes your way, here are a few questions you should ask yourself:

• What is my (and my spouse’s) tolerance for risk?
• How much am I willing to invest and for how long can I wait for a return?
• Do I have the time and willingness to manage people and property?
• What are my investment goals?  Buy-and-Hold?  Fix-and-Flip?
• Am I a passive or active investor?
• How should the group hold title?
• What are my tax benefits or consequences?

Don’t worry if you do not know the answers to all of these questions.  In fact, it should generate more questions.  For more information, give us a call.  We would be happy to discuss whether group investment is ideal for you.