Before accepting a Private Money Partner, we do a series of meetings to get know each other and I educate him or her on the pros and cons of being one of my “funder” partners. Because of these teaching sessions, most of them decide to do these deals via a Self-Directed IRA account.
Once a deal comes across my desk that I’d like to buy I become the “catalyst” who does all of the work for the investment including:
- Finding the property and negotiating the purchase at a reasonable price
- Managing the closing
- Completing the property repairs to make it “ready”
- Managing the property
My Private Money Partner is completely passive and leverages into the deal solely as the funding source. My Money Partners do not have to find the property, deal with contractors, toilets or tenants and that is a great way to participate passively!
The main reason I attract Money Partners is because they participate in a deal passively, invest on Main Street vs. Wall Street and is nicely secured in the deal to manage risk.
Remember, the reason we never use our own cash is to give our Private Money Partners the ability to make better than average returns on their capital.
As the “catalyst” working directly with Money Partners, results in a winning combination for cash flow and equity growth using a joint venture arrangement.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).