Getting financing for your real estate deals can come from a number of sources. Some will be better for you than others depending on how you want to structure the deal and what, if any, financing you may have at hand. One of them is through a “Joint Venture” where like-minded individuals pool their investment capital to purchase a property for profit.
One of the benefits is that expenses are divided amongst the members which means less out of pocket expense for everyone, one of the drawbacks is that there’s a budget and each expense must be approved by all of the members, which can become tiresome and time consuming. Unless it is contractually agreed upon that it will your sole responsibility to hire a contractor, an inspector, and get all permits needed etc, you must come to an agreement on each of these decisions as a group. A legally binding contract must then be drawn up stating the duties and responsibilities of each member of the group.
Also, if you will be performing a function in the group which requires more time on your part than that of the other members, because their schedules won’t permit it, you can receive payment from them and have it stated in the contract. Even if it becomes your sole responsibility to make these decisions for the group, it’s very important that you have daily contact with the other members via phone, fax, or e-mail. it keeps them in the loop and it’s reassuring knowing how their money is being spent. Joint ventures are a team effort, and on a team each member has a role to play, and when each player has the best interests of the other players at heart, there’s a very good chance for success on the “field” of real estate.