The moment you talk about making money in any real estate investment venture, the thought that occurs in most investors’ mind is ‘What are the risks?”. Most people think that in order to make money in real estate you need to have a truckload of money to start off with.
If Donald Trump taught us anything at all from his many public forays, it’s that this is simply not true. Any real estate investment deal is made up of many multi-layered parts, all of which work together seamlessly to make it happen.
Because there are so many ‘parts’, and I will get to them in a moment, successful real estate deals can happen with no money at all from the part of the real estate investor and minimum risks on the parts of his ‘silent’ partners.
The only way to do this is if all parties bring to the table a certain leverage. For the real estate investor looking to close deals and make money, this means expertise and the ability to negotiate complex real estate deals accurately, profitably and fast. For his ‘partners’ which, essentially form a syndicate putting money into the deal it means they bring in cash and, in return, gain access to expertise they have not got and a spread of the risk on their investment as they only put in what they are comfortable with rather than the large amount necessary to close the deal.
This kind of win-win scenario allows the real estate investor who is low on cash but rich on expertise and negotiating skills, to set up a syndicate that will back his efforts, front it, close deals and walk away with money for everyone, including himself.
As a real estate investor with years of expertise and a reputation in the market, I get approached frequently to front syndicates who want to invest in real estate but have no real know-how and also want to reduce some of the risks involved. For the real estate investor fronting the syndicate, the real risk is in closing the deal and justifying their reputation.
Provided you know exactly what to do and how to handle it, and this is an area, which I often spend a lot of time on in the courses and boot camp workshops I run. You will find that investors with money beat a path to your door, eager to take advantage of your skills and capitalize in the appreciation and gains, which can be had by investing through real estate.