Jay Reding

Owning Investment Property without Being a Landlord

Do you want to invest your funds in real estate but don’t want to spend the time necessary on the tedious aspects of acquiring and maintaining one or more properties?  Do you know that real estate is one of the best ways to invest but perhaps you have little knowledge of the ins and outs?  The real estate investor has many options at his/her disposal.  There are professionals that can handle some or all of it for you.   

Do you want to invest your funds in real estate but don’t want to spend the time necessary on the tedious aspects of acquiring and maintaining one or more properties?  Do you know that real estate is one of the best ways to invest but perhaps you have little knowledge of the ins and outs?  The real estate investor has many options at his/her disposal.  There are professionals that can handle some or all of it for you.    

Real estate has become more complicated during the current economic times.  It has also become more exciting and lucrative in many ways.  There are great deals to be had and there are many experienced wholesale investors out there to help you benefit from them.  A good real estate agent can handle complicated deals such as short sales and foreclosures.  Many agents also know excellent wholesalers.  These types of deals can provide a real increase in value quickly.  In today’s real estate market, there are often more deals like these than there are traditional ones. Real estate professionals are embedded in the market and can often tell you where and how to find such investment opportunities. 

Your first decision is to choose what type of investor you want to be. A Limited Partnership, also referred to as an LP, joint venture or equity arrangement allows one investor to provide funding while another will provide his/her time and skills to find the investment property, handle the purchase and even manage the property if the intention is to hold onto the asset. Profits are split between the investors in this type of arrangement.   

You may prefer to do a Private Placement or PPM where your funds will be pooled with other investors and the entire transaction from beginning to end will be controlled by someone else, usually an experienced management team. 

A skilled real estate wholesaler can provide you a Turnkey Investment Property.  As the investor, you purchase a discounted property that has already been renovated and leased.  Property management is already in place. This can be done with a tenant in place who wishes to rent to own.  The tenant will buy back the property from you, the investor, in the future providing you with the security of a buyer from the beginning.  Or, it may be a discounted property your wholesaler locates, rehabs and flips providing you with an immediate profit. It really couldn’t be easier than that. 

So, if you want to be a real estate investor but prefer not to be a landlord, the only work you really need to do is to find a good wholesaler with a support team. .  While he/she is working hard, the investor reaps the benefits. 

Tell us what you think.  

Article Tags: Real Estate

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