100K investment through partnership

4 Replies

Background -

By profession, I am Criminal Lawer and now I am trying to venture out in Real Estate Business. Though I don't know much experience in the Real estate but have enough experience of how to bring Real Estate fraudulent to justice :)

I know Real estate requires lots of patience and learning and what I believe is you learn while you make your hand dirty business.

What I am looking for is to invest 100k in Multi home/ duplex/ triplex/4plex/apartments for cashflow through partnership and slowly build my knowledge in real estate

@Amit Bajpai what would you say your goals are in real estate? Does your schedule allow you to become an active real estate investor? If you are as busy as most attornies I know, you might be a good candidate to invest passively in commercial real estate syndications. You can invest in apartments as I do, or you could also look into self-storage or mobile homes. This could allow you to earn healthy returns and take advantage of some great tax benefits, while you also learn the business. Plus, you might be accredited, which qualifies you for these types of investments. There are investments open to non-accredited as well, but not quite as many. Another attractive feature of syndication is the diversification of risk, due to the sheer number of units. If 1 person leaves your 200 unit building, you are .05% vacant. If your tenant leaves your duplex, you are 50% vacant. 

People often think they want to be active investors, when in actuality, passively investing might suit their current situation better, and they can still benefit from the same cash flow, appreciation and tax advantages. 100k could get you into two syndications to start, and once your capital is returned to you, you can redeploy and start to grow the number of deals that you are in. If, after, some time you free up, you could start to invest actively as well.

If you do have the time and more risk tolerance, you might consider doing a BRRRR strategy on a small multi, or a smaller apartment. Eventually, you may do both active and passive. I do both myself.

Many busy professionals find passively investing in syndications as a great way to place their existing capital in a cash-flowing asset while they can take their time and gain a deeper knowledge of the process. There are a lot of operators out there so proper due diligence is very important to a successful passive investment the same as it is for a successful active investment. BP doesn't like when we promote in the forums so feel free to reach out and I can share some good resources for educational material.

Welcome to BP @Amit Bajpai . There is more info than you can take in so keep your focus sharp and keep thinking big. With your background, you shouldn't have any problem vetting different sponsors/operators with strong track records.

All the best!

Originally posted by @Amit Bajpai :

Background -

By profession, I am Criminal Lawer and now I am trying to venture out in Real Estate Business. Though I don't know much experience in the Real estate but have enough experience of how to bring Real Estate fraudulent to justice :)

I know Real estate requires lots of patience and learning and what I believe is you learn while you make your hand dirty business.

What I am looking for is to invest 100k in Multi home/ duplex/ triplex/4plex/apartments for cashflow through partnership and slowly build my knowledge in real estate

 Amit, could you better define what you see as being your "ideal" partnership structure? I think that would be most productive for focused replies.