Creating investment partnerships is one of the most powerful strategies to buying cash flowing properties for short and long term gains. When two or more people join together, to spread the risk, add their experience and gain sweet returns from purchasing property, a partnership takes place.
This is a mover and a shaker. Someone who is Bade Achhe Lagte Hain Today Episode putting their boots to the street, finding deals, making offers and negotiating the terms. As Donald Trump put it “doing deals is an art form”, being able to successfully build a relationship with a seller and negotiate terms that have everyone involved smiling from ear to ear is truly an art form.
Sometimes also called Uncle Money bags or Assetsgalore. Bade Achhe Lagte Hain Today Episode This role is best played by cash and or asset strong folks that are looking for secured investments, love real estate but do not have the time, energy or expertise to make these opportunities successful. They prefer to sit back, pick the right deal to invest in and sit back & cash the checks.
This superstar has been through the ups and downs of real estate and business. You can often find this role also played by the Deal Maker. Their main focus is after the sale. How to roll in new property management, what capital improvements to complete and so on. You can often find a CPM (certified property manager) to fill this role as they have the experience and training. That is if you are buying apartment buildings or commercial real estate. (If you are not buying these types of assets then you need to have your head checked. )
Another pitfall to take note of and which must be addressed upfront in structuring your partnerships are that your assets and liabilities are at stake. These are not easily divided or liquidated. So everything in the partnership should be in writing and reviewed by a good lawyer. There are certain steps to take care of though; a partnership agreement must be drawn and the general partners and the limited partners must be specified. Even the return on investment and terms are typically documented in the agreement. Some agreements also have an ethics and morality clause. If you don’t you could find yourself broke, busted and disgusted.
Limited partners are those that are responsible only for the investment debt of the amount they have invested, that is, they cannot lose more than they initially invested. However, they do not have any authority over the investments and the daily working required in case of owning the property.
The benefits for the limited partner are tax shelters, returns on investment and very little involvement in the working aspect of the partnership. While the general partner, has advantages like possibly a zero investment, but even so getting a return on the investment made by the limited partners and largely being the on responsible for way the agreement turns out.
While it may not be hard to create partnerships to buy investment property, it does not always have great results. If the partners in place have no trust in each other and if any clause in the agreement is violated, then the whole deal may turn sour. Having everyone on the same page from acquisition to exit strategy must be in place from day one.
Dawson started real estate investing in 2003, and has held a real estate investment portfolio of more the 7 million dollars and has helped property sellers secure more than 30 million in purchase contracts. In addition Daniel has raised more the $400, 000 from private lenders to help facilitate the purchase of his real estate portfolio and has provided those private lenders with annual returns of 10%-12% secured against the real estate.