In the ever changing-world of investment real estate there are always new and innovative ways to invest. Whole ownership is the oldest and certainly the most popular, followed by Partnerships, and Limited Liability Corporations.
The only problem is too many are like Bob who does not want to take the entire risk and really wants to do multiple properties. He doesn’t have the cash for multiple real estate investments and would like to discover a way to join other like-minded investors to share the risk and increase his investment potential.
Here are a few of the newest and most successful ways for Bob to achieve his investment goals:
• BLOCK CHAIN INVESTING Buying a fractional share of a larger property with other investors. The purchased shares are converted into digital coins that can be traded on the secondary market. This represents a great way to enter the real estate investment world, investing in larger profitable properties.
• CROWD FUNDING As the price of investment properties continue to increase in cost, this is a program that limits liability, spreads your risk and allows you to chose the level of investment with which you are comfortable. It can provide you with the opportunity to participate with other investors in a larger property with greater profit potential. Each investor will share in a proportionate share of the profits based on the level of his investment. While he shares in the profits, he does not share in any loses. His liability is limited to his monetary investment.
• FRACTIONAL OWNERSHIP Popular for many years in condo vacation purchases, this investment vehicle has now become popular in commercial investments. An investment property may be divided in several shares for example 4, 6 or 8 shares. Each owner of shares has a vote equal to his shares for the managing partner who may than hire a management company to manage the day to day operations, such as a hotel or large apartment complex. It may be operated as a limited liability entity with the general partner only having liability for the mortgage.
Bob now has several vehicles to achieve his investment objectives. He can choose the one that best suits his situation.
On the Local Scene
The OFFICE/RESTAURANT BUILDING AT 1810-1812 TOWER DRIVE, MONROE has been sold for $375,000. The building with 50% unfinished space sold for $52 psf. The FAT PELICAN RESTAURANT will remain open in the front of the building.
Bill Roark is a Commercial Associate Broker at Tri State Properties and may be contacted by email to firstname.lastname@example.org.