Why Even Invest with Others?
A free video tutorial from Symon He
Author | Investor | Entrepreneur | Stanford MBA
4.5 instructor rating • 12 courses • 230,221 students
Learn why would you want to invest with others? What are the potential benefits?
Learn more from the full courseFundamentals of Analyzing Real Estate Investments
Learn professional investment analysis techniques for real estate investing in residential and commercial properties
18:34:48 of on-demand video • Updated December 2020
- Confidently Evaluate the Return Potential of Any Real Estate Investment Opportunity
- Know a "Good" Investment from a "Bad" Investment
- Use Professional Grade Investment Models to Evaluate Your Deals
- Evaluate Rental Income Properties
- Evaluate Fix & Flips
- Evaluate Commercial Properties
- Evaluate Airbnb Properties
- Use Smart Investment Deal Structures With Business Partners
- Understand and Use Professional Real Estate Investment Strategies & Techniques
English [Auto] All right now is take a look at why so many serious investors invest with other folks. What are the benefit one it allows you to pool your resources as a single investor. You're only going to have so much money so much time and so much knowledge and expertise. But when you partner up with other folks you're going to have more money more time and more expertise so that you can do more deals and do better. You also get multiple sets of eyes. Now you can evaluate a deal on your own but if you've got a second third or fourth set of eyes to look at a deal you're going to be able to identify more risks and be able to identify ways to mitigate those risks better than if you were to do it on your own. Having investment partners allows you to complement each other with your skill set as well. So maybe one of you is much better at doing investment analysis and crunching numbers. One of you is way better at managing contractors. Maybe one of you does a lot of handywork and can save the project money. And one of you has a lot of outreach with the community and can find tenants really easily. So if you have different folks who are good at different things you can bring them all into the project and complement each other. You get to divide up the tasks as well. Doing an investment project. Some are not as involved and some could be quite complicated and take a lot of work. Having Inv. partners allows you to be able to divide up the work so that you can be part of a great investment opportunity without having to do 100 percent of the work. Having more investment partners means you have a bigger network having a bigger network means you have access to other experts to more potential tenants to more potential service providers contractors whatever it is having more contacts can only help having more people in the investment means is more accountability in that investment as well. When youve got multiple folks with skin in the game theres less likely for someone to be lazy or to have something fall through the cracks. Next one of the biggest reasons that serious investors invest with business partners is that it allows them to spread their risk. What do I mean by that. Now if you as an investor you have a certain amount of money and you can put all that money into one investment. Now what happens if that investment goes sour and tanks you might lose all of your investment dollars. But what if you brought in five partners and and now you spread that amount of money in five projects equally. Now one of them goes sour. Youre only at risk of losing one fifth of your investment. So having investment partners allows you to spread your investment dollars across more deals. Finally investing with other folks makes the investment process more fun. There is a lot to be done and from finding the deals securing the deal to doing the renovations and marketing the asset finding tenants doing all of those things when you have other people to talk to to go through that experience together and especially at the end when you sell an investment and reap the profits and get the celebrate its always more fun to have people to celebrate with. Bud if you dont do it right. If you invest with other people haphazardly there could be some major downsides. We're going to explore some of those in the next lecture.