Recently, a lot of people have approached me with the question, which is better? Buy an investment property on your own, or join…
Recently, a lot of people are asking me what is better?
Buy an investment property alone, or join an investment group.
Many startup investors are debating this, and do not always know the differences and meanings.
In the post I will try to summarize (as much as possible…) the differences, advantages and disadvantages of each option.
I didn't cover everything (because two days can talk about the differences) but I think I covered the main things.
(The post is written in male language but refers to all genders)
Enjoy and good luck!
Private ownership:
Advantages:
The house is registered in your name, you decide what to do with it, if you meet everything you need (taxes, regulation, etc.) it is impossible to "touch you". You earn all the profits, easier "operational" compared to a group, you are limited in the amount you have anything that can result in buying a poor quality property.
Cons:
It's all about you, you must (must!) Learn and know everything in the market in which you invest, your decisions (for better or worse), you have to take care of everything (even if there is a management company, in the end you must be involved otherwise you will be abused or not taken care of Properly), you must conduct accounting in an orderly manner, the risks only on you because any damage or problem comes directly out of your pocket and if there is a problem - you need to jump in there to take care.
Group investment:
Advantages:
Someone else takes care of everything, makes decisions (and if he is part of the group or only profits from the profit then the identity of interests is clear…), the group managers are usually experienced and know the local market and how to run it, they take care of all payments and taxes, take care of everything operationally. In a group transaction, you buy a larger, high-quality asset (for price and investment reasons), which makes it possible to buy a multi or a large entrepreneurial transaction.
Cons:
You are not a manager, someone else is managing for you, you are not the property owner (but if you invest in a serious entity, you will have enough collateral to be relaxed), you are part of a group and must make sure that one (not the manager) cannot decide for others and the like.
I am personally invested in both and also have diverse investments.
Although I speak of a "position" as the owner of an investment house, but in my opinion in a group investment the advantages outweigh the disadvantages and this is always through my favorite investment (I always invest in all groups of my investors, even personally).
And always build your investments according to your personal / family and financial goals and objectives.
And that's exactly what we do…
And the most important thing is that the group has an unchangeable business plan and that you are a single investor you can change the plan if needed (immediate money needed)
A US resident can take out a mortgage and leverage the investment, when it is private ownership