Updated over 11 years ago on . Most recent reply
Joint Venture
I have a couple of small deals under my belt and have a friend, that I've known for years, that has approximately $40K to $50K he wants to invest. He is afraid of the stock market and wants to invest in real estate with me.
This is obviously good for me but not having a lot of experience, it is also scary. My thought is to joint venture on a 50/50 basis with him supplying the money and me the work. We both want to eventually have a business that supplies passive income but start out by wholesaling to build up the funds to go into rehabbing and then land lording. However it may be better to acquire property via creative financing and then do a lease option strategy using his money for marketing.
I really want to be conservative here to protect his investment. Any suggestions?
Most Popular Reply
I agree, ramp up marketing, cherry pick a deal and rehab/flip it. Find a GC that has worked with investors and manage the project. IMO. In my area your friend's capital wouldn't cover everything and without a track record you probably settle for hard money help. The upside of that is you get an experienced opinion on your deal.
Good luck!