Investing with others

[Stephanie Cortez]

Lots of my close friends and family have been approaching me lately to talk about real estate investing. They have shown real interest in going into a deal with me. I have never done anything like that but want to take advantage of the potential opportunities. Any ideas on where to start and how to invest with others to make profit without relationships going sour? 

[Brock Mogensen]

Syndication or a creative Joint Venture structure is likely what you're looking to do.

This is where you (as the General Partner) do all the work - find the deal, get the financing, manage the property. Then your "investors" (Limited Partners) put up the money. They are not involved in the ongoing work of the property, 100% passive.

In return, you as the General Partner take fees and equity upside (promote) for doing all the work.

There are tons of ways you can structure syndication deals, and I recommend really understanding the underwriting side before putting one of these deals together.