We’ve written many times on the fears associated with real estate investing, and many not feeling comfortable with it. Who likes dealing with repairs, tenant hassles, the market correcting, or other unexpected things that may come up? It’s no wonder only about 6% of our population invest in Real Estate beyond their primary residence. Those that do take the time to understand it and invest, come to realize the power and returns Real Estate could provide to their wealth and how they live their life (we are living proof of it!).
One of the main reasons we started Venture was to take the guesswork out of investing and guide investors every step of the way as they embark on their journey, and give them a community and access to us without charging coaching fees (If you are a client, there is no out of pocket costs). Most of our education with members and clients is around investing in real estate for those that want to be hands on and manage their investments themselves. We point you in the right direction, while you do the work.
On the other end of the spectrum, that we do not talk much about in what we do is “Passive Investing” or Joint Venture Partnerships. This is for those that are too busy with work, a career, family, friends, and life in general. Financially, a joint venture partnership is best suited for someone who is typically not happy with the single digit returns they are getting in traditional investments such as stocks and mutual funds and see the power of investing in real estate. A typical Joint Venture annual ROI should be +15% to upwards of 25%+.
So what is a Joint Venture Partnership? Essentially it is the joining of an Investor (or money partner), and real estate expert to purchase a property together, then share in the profits. Generally the money partner qualifies for a mortgage, and fronts the down payment, closing, renovation & holding costs to get the property stabilized and fully rented out (Costs over and above are usually split based on equity split). The real estate expert is in charge of all the rest; From finding a property, analyzing the financials and ROI, managing all renovations, managing the property once tenanted, and all administration/bookkeeping and day-to-day management that is needed.
This type of partnership is usually a 50/50 split in equity for each of the partners, however the terms are discussed and agreed to by the partners. How this works is that the money partner invests the costs needed up front, and every time funds are able to be withdrawn from the asset they are used to pay back the initial capital invested. All positive monthly cash flows as well as profit (after investment is paid back) is split based on equity percentage. Given we always aim to withdraw funds from an asset whenever there is equity, we look to have a partner paid back in full of their initial investment over time, and then still maintain their equity ownership in the asset moving forward (with essentially no money put in). As with any agreement however, both parties need to ensure they are protected. We always suggest using lawyers that know real estate investment and are familiar with these types of agreements.
Prior to starting Venture Property Investments, we were both able to quit our full-time corporate jobs by building Joint Venture businesses, and many of our initial partners were family, friends and former work colleagues. In fact, prior to become real estate operators ourselves, we were money partners for other real estate investors. Once someone understands the returns that can be generated with just one property, and then the compounding ability to use returns to reinvest, we usually suggest that they could do the work themselves and keep all equity. However, we also know how much work and knowledge is involved with investing in real estate, and it’s never a straight path to success. Essentially it is a trade off; we constantly tell our clients that you could outsource as little or as much of the work involved with real estate investment, and decide if the expected returns are suitable for what you are putting in. Working with us in our Joint Venture Partnerships, we always aim to keep our investors informed, and leave all the work to us. A really good year in the Stock market is around +10% growth, we are comfortable letting our investors know that they should be receiving +15% ROI at a minimum through Joint Venture investing, and it requires a similar amount of work to investing in stocks or mutual funds. If you would like to learn more about Joint Ventures, please get in touch with either Chris or Martin, or email us at firstname.lastname@example.org.
Visit us at www.VenturePropertyInvestments.com and our pages on facebook or LinkedIn to learn more about how we invest in real estate to profit in both an increasing or decreasing housing market. Or contact us if you would like to learn how we are providing double digit returns for our partner’s and clients year over year.
Until Next Time,
Build Wealth. Live Life
If you haven’t come out to one of our events, feel free to visit our events page on our site at https://venturepropertyinvestments.com/events/. If you are just starting out, or a seasoned pro, come out to Learn and Network with others like you.
Martin Kuev & Chris Shebib are full time Real Estate Investors, Realtors and Wealth Coaches who have over 20 years experience in Real Estate. With multi-million-dollar real estate portfolios and a team built over the past decade, they left the corporate world to have the flexibility to spend time with family, continue their own real estate investments and help others build long-term wealth.
Both Chris & Martin are first and foremost Husbands, and Fathers. Both are actively involved with their families and each have 3 daughters keeping home life full of surprises.