Do you think you can move faster with a business partner? It is important to remember that approximately 80% of trade associations do not work. The odd numbers are very high and any real estate group you are involved in may not survive. Cautiously enter your investment group with watchful eyes. Here are some key factors to consider.
Make sure your goals and objectives are consistent with those of the rest of the group. Are you committed to working all hours of the day to get the job done? Well, what about your partner? You know what skills you have. You know your strengths and your weaknesses. If your partners are your friends and family, you probably have a good idea of the skills they can bring. However, when joining an investing group of strangers, it is important to clarify exactly what skills, if any, will bring to the overall collective goal. Sometimes your investors will simply put their money into the project and not participate in any work that needs to be completed.
Consider the liquidity of the investment. How fast can you get your money out of your investment in Fraser Valley Real Estate? You should not invest money that you cannot afford to lose. This is the rule of thumb and should apply to real estate in all areas of the Fraser Valley and the Lower Mainland area. For example: Richmond, Surrey, Coquitlam, Burnaby, New West, Langley, and Abbotsford. In practical terms, most investments are tied up for the duration of the deal. This issue, of course, is critical. This has a direct correlation with your investment liability. You want to avoid personal liability for any financial problems that may occur. If you are investing in a corporation that owns group property and the corporation has obtained a mortgage with a lender, the lender may require personal guarantees from the corporation’s shareholders. That would be YOU!
Consider … When investing with a group is getting out of hand, how do you get out? Why not a purchase? Make sure there is a procedure to follow before making a specific group investment. Know the conditions of purchase before putting the money on the table. Your investment in Fraser Valley Real Estate should always be safe and secure. Whether you’re buying a British Columbia condo, apartment, townhome, home, or mobile home, remember to hedge your assets.
