GordonJ
May 6, 2009, 07:28 PM
I'm with you an that one.
Personally I like the idea of "Toll Booth" real estate.
Like Apartments.
They were ment from the get-go to be a "cash flow" business.
I managed a 120 unit complex for 3 years. Trust me, LOTS OF CASH FLOW.
Fishman
Imagine having over 2200 units paying top dollar every month...wouldn't that be sweet? That would be sweet, eh? So HOW?
The RE Partnership. I've written about it before, somewhere in the archives...but I'll give the quick version.
Two of my golf students were members of a RE Partnership, I believe they had 10 people. ONE of these guys is a well known realtor in our area and he was the Managing Partner.
The "silent partners" just put their cash into it, and the RE guy kept adding assets. Now they may have a lot more than the 2200 units, it could be as many as 5,000 by now. They specialize in the "nice neighborhood" units with 35-75 units each. Small, but very manageable. They replace appliances often, they keep the apt complex LOOKING good, they charge on the high side of the market...and they screen like the devil. Good neighbors (tenants) are the best "amenity" people look for.
This group changes every so often when one of the members sells his share, and the cash out is significant, but the CASH FLOW is very nice too. Some of these guys have been collecting passive income for over 25 years, and there are tax advanages if set up properly.
It is a viable idea today...and some of YOU, with real estate expertise, could probably manage the group.
Here's a quick read about partnerships:
http://reiclub.com/articles/partnerships-real-estate-investing
http://realtytimes.com/rtpages/20040726_partnership.htm
http://www.biggerpockets.com/renewsblog/2006/11/16/real-estate-partnership-questions/
Consider spreading the risk and the reward and growing a CASH FLOW business that will pay you for decades.
Gordon Alexander
Personally I like the idea of "Toll Booth" real estate.
Like Apartments.
They were ment from the get-go to be a "cash flow" business.
I managed a 120 unit complex for 3 years. Trust me, LOTS OF CASH FLOW.
Fishman
Imagine having over 2200 units paying top dollar every month...wouldn't that be sweet? That would be sweet, eh? So HOW?
The RE Partnership. I've written about it before, somewhere in the archives...but I'll give the quick version.
Two of my golf students were members of a RE Partnership, I believe they had 10 people. ONE of these guys is a well known realtor in our area and he was the Managing Partner.
The "silent partners" just put their cash into it, and the RE guy kept adding assets. Now they may have a lot more than the 2200 units, it could be as many as 5,000 by now. They specialize in the "nice neighborhood" units with 35-75 units each. Small, but very manageable. They replace appliances often, they keep the apt complex LOOKING good, they charge on the high side of the market...and they screen like the devil. Good neighbors (tenants) are the best "amenity" people look for.
This group changes every so often when one of the members sells his share, and the cash out is significant, but the CASH FLOW is very nice too. Some of these guys have been collecting passive income for over 25 years, and there are tax advanages if set up properly.
It is a viable idea today...and some of YOU, with real estate expertise, could probably manage the group.
Here's a quick read about partnerships:
http://reiclub.com/articles/partnerships-real-estate-investing
http://realtytimes.com/rtpages/20040726_partnership.htm
http://www.biggerpockets.com/renewsblog/2006/11/16/real-estate-partnership-questions/
Consider spreading the risk and the reward and growing a CASH FLOW business that will pay you for decades.
Gordon Alexander
