Forums / Property Investing / Creative Investing / Young/novice investors group buy

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  • Profile photo of DolamootDolamoot
    Participant
    @dorrace
    Join Date: 2016
    Post Count: 17

    I’ve had an idea for a while to start a company with a small group of like minded investors people who are at a similiar stage in property investing as I am with less then 2 properties and a lack of buying power.
    Ideally the mission would be to go into a property purchase together co-purchasing or having shares in a company owning the property with each shareholder on a small board, it would be easier to start out co purchasing I believe then slowly transition into a trust or company structure.

    But what I want to know is if anyone is interested ? It would really only benefit people who lack the big $$$ or power to borrow in excess of 100,000

    With bigger deposits you can gear a property more towards positive cashflow , instead of one person putting in a full deposit amount of 20,000 on a 100,000 property you could have 3-4 people with 10,000 each with their own respective loan

    Ideas or counter ideas ? I’m ready for them

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Too many variables. what happens if one person got divorced, sick or died? The other parties would have to quickly pay them out or you have to sell some of the properties. I don’t mean to put the idea down, I mean it could possibly work well in a family situation but you wouldn’t want random people involved. Are the Apra changes holding you back from borrowing more?

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of DolamootDolamoot
    Participant
    @dorrace
    Join Date: 2016
    Post Count: 17

    I simply don’t earn enough but I appreciate your feedback I understand and agree which is why you definitely need to have it structured well with a solicitor have everything on title and contract but if you had a handful of people staked in with a common agenda like a real estate trust fund but private, small scale and more personal but in that situation a company would be better because you would deal with shares in the company but financing would be very different

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