just wondering, i know there is alot of people who wish they could invest in real estate as it is a great investment market. I wish wondering if you would invest in a company that invests in real estate for you?
So like lets say the company has all these listings of different real estate projects they are going to buy and you can pick from one. So maybe there is 100 acres they are going to buy at 100,000 dollars. you would be able to invest 1000 dollars in this property threw this company, so realisticly you would on 1 percent of the propety threw the company. then maybe in a year the company would sell the property and get 200,000 for it. you would then get back 2000 dollars. 1000 for the investment and 1000 dollars profit.
would this be something you would do to invest in real estate or you think others would do? of course it would be a legal corporation not like some side business.
I am just wondering as myself would love to invest in realestate but dont have the money.
Thanks!
2006-09-07 15:46:32 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You can invest in them REIT's, its like investing in a mutual fund.
2006-09-07 15:48:31 · answer #1 · answered by The Man 5 · 0⤊ 0⤋
I think that the important key here is that you are investing... that is good.
If you don't have money to buy a property... but, rather invest in a company... it's a little different of a transaction. I'd approach it differently.
One aspect of owning RE is that there are certain advantages for the investor. An example is depreciation. You can shield an awful lot of income by depreciating property.
Whatever the investment decision that you make, research it a little.
The above sounds like you would have TIC ownership in the property which would entitle you to some of the RE benefits.
2006-09-08 02:02:49 · answer #2 · answered by starke222 4 · 0⤊ 0⤋
I investigated R.E. investing at one point, and what you are describing is not unheard of; really, it's the ultimate example of Other People's Money. The thing is, you still have to be able to show a track record of being a sound investor before others would make an investment in you, it's not like you're going to be able to round up investors on "I think I'd like to do this".
As with most start-up businesses, you're probably going to have to get started on your own capital, or borrow some money from family. The good news is, you may not have to do that, there are many great ways out there to get started in investment properties without pulling money out of your own pocket, just don't think you can start tomorrow, you need to study and learn.
A great way to learn the ropes is go to your local community's investors club, most decent sized towns have a group of R.E. Investors who meet regularly...you'll find most of these types rejoice in other's successes, because there truly is enough to go around. Also, as you learn how to find properties, you could offer to Bird Dog for somebody (find properties that the investor might like) who would take you under their wing and teach you the ropes. You'll make a couple hundred dollars for each purchasable property you find this person, you'll make his life easier, and you'll learn a ton in the process.
Had I not found my dream job, I'd be doing this today. I have a friend who after 4 years of acquiring properties, had 40 rental units turning nice profits, he and his wife quit their jobs and got an awesome house in the country for about a 3rd of what it was actually worth (using principals he had learned). This was 3 years ago, no telling where he is today, but he's obviously well on his way to being a wealthy young man (he's not quite 30).
2006-09-07 22:55:47 · answer #3 · answered by You'll Never Outfox the Fox 5 · 0⤊ 0⤋
Yes, I would invest in a company that invests in real estate for me. This happens on a smaller scale all the time. A person who is good at locating and renovating properties for resale (maybe a contractor, or just has the experience), but who may not have the cash or credit (or has already borrowed for other properties so banks will no longer lend to him/her) forms an LLC or LP and money partners invest based on the first person's portfolio of previous rehabs. This is a good way to get involved with a successful investor by backing him/her with finances.
On a larger scale, Redbrick Partners, LLC does something similar to what you are asking. They manage the first institutional-class funds in the U.S. dedicated to investing in single-family housing. From their website:
"Our core business is creating and managing real estate investment partnerships that allow individuals and institutions to invest in the equity of a diversified portfolio of single-family housing and related assets. These funds seek to provide strong total returns and a low correlation with equities and long-term bonds"
2006-09-07 23:54:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There are many REITs (Real Estate Investment Trusts) traded on the stock exchanges. They often specialize in different segments of the market (office, retail, residential). Be aware their dividends are not qualified (you pay regular income tax on them, not the preferred 15% dividend tax). They usually are not property "flippers" but instead can be thought of as investment streams, as they collect rents.
2006-09-07 23:00:37 · answer #5 · answered by szydkids 5 · 0⤊ 0⤋
not a good time to start investing in real estate
as the baby boomers turn grey, they will also be turning to condos/apartments and houses will be in supply glut, causing prices to drop, early warning signs are the headlines you have been reading lately about the slow down in housing starts in the US
2006-09-07 22:58:57 · answer #6 · answered by capollar 4 · 0⤊ 0⤋
make sure this is a legal transaction first,you can also lose on
investments so make sure you dont invest all you have .start small
2006-09-07 22:57:22 · answer #7 · answered by boozer 3 · 0⤊ 0⤋