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Real Estate Investing, Coaching & Education

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08 Aug

I want to Invest but don’t have the Money, Time or Experience

A number of people want to get into Real Estate but are faced with these three main challenges.
  • no time (busy schedule)
  • not enough funds
  • Minimal experience

If you’re faced with these challenges, let us know. We would be more than happy to arrange a meeting with you to see how we can help. We have a number of investors that we work with and many of them are looking for a joint venture partner as well. It’s a great way to start… I know because I’ve been there.

Now that spring is finally here it’s the perfect time to really start looking at how this Rent to Own strategy works. I can tell you from experience….. I’ve done straight rentals and Rent to Own and there is no comparison.

Rent to Own wins hands down!! Over the past few weeks we’ve started to see a number of Rent to Own tenants expressing more and more interest in getting into home ownership and have down payments starting at $5000 and up, plus first and last month’s rent.

Not sure if it’s because we’ve beefed up our advertising or if it’s related to the birds singing in the air. Either way….. there knocking at our doors and it’s a great opportunity for our investors and also the tenants.

So let me tell you about my own personal story and on how I first started and why I agree with doing joint venture agreements.

My very first rental property that I attained over 3 years ago was a joint venture agreement. The property that was purchased was a fully detached bungalow home with a finished basement and a separate entrance.

The lot size was 50′ by 200′ and we purchased it for under $200,000. Now, I’m not stating these figures to brag, I want to show you the power of Real Estate. It’s almost impossible to find a home in Durham that’s fully detached with an over sized lot for that price today.

Not sure if many of you remember, but back in 2008 there were some interesting things happening in the real estate market. This may sound crazy, but you could purchase a property with $0 down!! How insane is that.

The only thing that was required out of pocket for this property was the closing costs and lawyer fees that totaled $2943.86. Guess what, I didn’t have the money to do it on my own. Kind of embarrassing but the truth.

A Joint Venture agreement allowed me to get started into Real Estate. If I knew then what I know now, I would of purchased 10 homes that year in a joint venture agreement with other investors that had money.

Listen, even people who are successful use Joint Venture agreements including the likes of Donald Trump. So whether your looking to purchase your first investment property or already have 10 homes in your back pocket, there will come a time when you’ll eventually exhausted your capital. When you do, you will need to turn to a partner to help increase your wealth and cash flow.

Most joint venture agreements work like the one I’m about to illustrate below however, they can come in a number of different flavours.

Investor A has the money but no time and wants to start investing into Real Estate

Investor B has no capital to invest but has the experience or is willing to manage the property

Here’s the key….. there has to be a benefit to each joint venture partner for it to work. Investor A needs something from investor B and Vice-Versa and it’s a 50/50 split right down the middle. Now there are obviously other ways joint venture agreements can be formed.

You can do a 60/40 or 70/30 because someone is bringing more to the table, but 50/50 is the one that I tend to see transpire most often.

If anyone is interested in pursuing this path to get started, we have the Joint Venture agreements that we’ve spent hundred’s of dollars on to create.

Now….. for staying tuned and reading our newsletters, we’ll provide this to you at no charge. That’s right….. FREE!!

Each Joint Venture agreement can be different, so we always recommend that you have your lawyer look over the agreement to make sure it fits your needs.

See….. free membership has it’s privileges!!

Gary Hibbert

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Smart Home Choice Inc.

P.O. Box 51109
Ajax, Ontario
L1T 4S0 Canada

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