Hi Guys,
Can anyone tell me, are there any legalities involved in having a silent Investment partner?
In your experiences, is is better to go it alone at a slower rate, or have wealthy Investment partner?
Better to use equity in own home or IP?
scokarUnless you both can approach it in a purely businesslike and unemotional manner then invariably it is a bad idea.
Doing something with a friend may cost you the friendship. The unexpected will occur and he will want his money back when the market is low.
Almost always better for you to borrow the money and go alone.
but there are exceptions – look at Steve and Dave.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for your reply, MH, the investment partner in question is my husbands boss of 10yrs who has his finger in the pie when it comes to Removal homes & already owns substantial amount of real estate so there is a lot of trust there already. Do you know much about the legal side of it, any advise?
Your solicitor will be able to help you draft a JV agreement that covers what actions you will take in the event of a disagreement or one party needing out.
if he has a lot of knowledge, money and experience then what does he want from you? What is your risk tolerance?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I should of been more specific, he has the money, owns house removal business but has never done any speckies for himself- has no knowledge of paper work involved- Engineering, council, so on. Therefore no experience. Although he owns some IP they sit idle as he doesn’t have the knowledge or time to invest. He is only now looking to Realestate for income & profit.
Does any one else have any advise about getting started, I haven’t any Investment properties at the moment but intend on that changing very soon. About 5yrs ago I had a bad experience with my very first investment prop. Tenant wasn’t paying rent had to fire leasing agent, hire another in order to take tenant to court to have her evicted. House was left totally trashed,we lost 3+ mths rent had to re-do all the floors, the clean-up was horrific. The bond was a joke!
As you can imagine, we were totally put off & sold the property, wouldn’t you know it… then came the boom. Only just now looking to get back in the game.
Advise anyone??
scokarGet Landlord’s Insurance. Its an extra cost but well worth it ESPECIALLY when your still just starting out and a single property in your portfolio going to bad tennants can affect you badly.
Go it alone. Times change, people change and you can’t sell properties as easily as shares. BUT maybe he’ll still give you “mates rates” if you help him operate his own investment portfolio, separate from your own. (not sure of legalities here).
ADVICE: start slowly, simply and safely unless your already know what your doing (or have a mentor). Attend every free investor meeting you can (investors club, etc) and visit sites like this one regularly (basically immerse yourself in the investors world). When possible, get a mentor (someone who’s already successful and can give you advice). And return the favor by mentoring someone else one day.
red_rogue,
Thanks so much for your reply, your advise is appreciated.
Where do i look to find investor meetings in my area?
scokarWhat is your area?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I’m in the Wide Bay & Burnett area
scokar
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