Real Estate Business

June 17, 2009 Business, Investment No Comments

A partnership is a wonderful way to get started in the real estate business. A partner can be a friend or a colleague, someone who’s willing to finance you and possibly work with you on the renovations.

A joint-venture real estate partnership is an arrangement whereby two or more parties with plans, projections, and a budget invest jointly in a property. Upon sale of the improved property, profits are split in a prearranged proportion among the partners. A written agreement, approved by a lawyer, is essential.

Partnerships are great in a home wrecking career. You have someone to share the trials and tribulations, someone to take over if you have the flu and can’t get out of bed, someone to knock heads with over a budget or the latest hardware catalogue.

Another possibility is that you find a partner to be your financial backer. He or she puts up the initial investment while you do all the work. This is an excellent way to get off the ground as a home wrecker.

After one or two successful projects, you and your partner may want to rethink your original financial arrangement. Whoever does more work should get a bigger return—a larger percentage of the profits.