Thursday, September 11, 2008

Joint Venture - creative investing

I read a brilliant article in this month's Australian Property Investor magazine this week...

The investor in the case study had built a $23M portfolio, not by buying and selling, or renovating... he'd done some of that, of course, but the majority of his money came from joint ventures with people who had big properties.

In this market (which is a buyer's market, and house values are declining), you will probably come across a few people who have to sell, but who are sitting on big properties. Subdividable properties, if you look in the right places...

So this guy goes up to the owners, and offers to put in the money to subdivide the property (which generally doesn't cost as much as buying them and holding them, let alone holding them while you organise the subdivision!). The deal is they "donate" the property for subdivision, and once the property is divided, expenses taken out and sold off, the profit is split 50/50.

Not a bad way to make a buck if you can pull it off!

No comments: