Buying investment real estate in Detroit is a great addition to any portfolio. Real estate is a lot safer bet than the stock market and it can provide a nice, steady flow of income. It can also be used as leverage to create even more buying power. Buying investment real estate with a partner can also be a great move because you will be able to pool resources and make larger investments with larger returns.
If you are a beginner in buying investment real estate in Detroit, MI, it would be a smart move to find an investment partner who has a lot of experience with the type of investment real estate you are interested in and very knowledgeable about the market. This way, you will optimize profits and potentially minimize and share costs. You can bring suggestions to the table and have a partner to confer with, ultimately selecting stable and profitable investments that fit your ideal portfolio. Call to discuss other benefits of buying investment real estate with a partner. Even if you have years of experience, it might be a good idea to partner with someone familiar in a different facet of investment real estate than you are, or simply to have more money to invest for larger gains.
How to Find an Investment Partner
We can help you find groups in Detroit, MI where you can meet other real estate investors who may be interested in partnering with you. When you meet someone you get along with, ask if they would like to get a cup of coffee to talk about a potential partnership.
You want to make sure your new partner is reliable and trustworthy, so it may not be a bad idea to ask them a few questions. Some examples might be: How many investment real estate groups are you currently involved in? How many investments are you planning to make this year? What is your potential investment amount if you partner with me? What investments have you made so far and what are their returns? How involved in the investment process are you planning to be? Who else have you partnered with that I can talk to?
Make It Legal
Protect yourself and your partner or partners when buying investment real estate. Form a legal entity and create an operating agreement. This will identify the ownership percentages of each partner and how much money each person has contributed to starting the partnership. You can also define the allocation of profit and costs of the investment real estate. You want to be sure to lay everything out in black and white so that there are no discrepancies in who is owed what and by whom.
Most importantly, the agreement will outline the roles and responsibilities of each partner. Make sure to define an acquisition and asset management process and hold each partner accountable for each assigned part of the process. Brainstorm all of the steps with your partner; finding investment real estate, making offers, the closing process, and fees associated, how to manage rentals, what is the division of profit and when does this occur, maintenance fees, annual taxes, attorney fees, and so much more. Figuring all of this out at the beginning is extremely important for a smooth partnership and will let your partner know you are serious!
Now that you have found your new partner or partners and created an entity with extremely specific roles and responsibilities, it’s time to start buying investment real estate! We can help you track down exactly what you’re looking for in your new investment real estate.