Joint ventures are an option every real estate investor should know.
Growing your real estate portfolio is capital intensive. Eventually you will run out of your own money. When real estate investors reach this point, you have to look for other people’s money, OPM in order to keep growing.
Jeff Lerman, the Real Estate Investors Lawyer, works with real estate investors. He takes us through the benefits of joint ventures compared to syndication.
A joint venture is the coming together of two or more parties to achieve a goal. It is the cheapest, easiest, fastest and safest way to do real estate deals with other people’s money.
The members of the joint venture must take an active role in the work to meet the goal. Investors cannot be passive. Roles must be defined, and records must be kept in order to satisfy any legal challenge of the legitimacy of the joint venture.
In all cases, joint venture or syndication, pick your partners wisely. Set it up right. The last thing you want is to get tied up in some lengthy, costly litigation that tears apart the wealth you have worked so hard to build.
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