JOINT VENTURE REAL ESTATE INVESTING JIM INGERSOLL
How could Warren Buffett buy a of bunch singlefamily homes? He has the financial backing, but
his missing piece is the ability to manage the
whole process.
You know the saying about the
elephant, where you have to eat just one bite at a
time, so let’s apply that concept to his strategic
incentive to buy all these homes and work out a
plan to capitalize on the opportunity.
1. Source the inventory of houses:
In order
to purchase a bunch of homes, he would need
tremendous deal flow.
Who could he work
with in order to find great deals on his singlefamily homes?
Who could perform due
diligence and verify the comparables to buy
the right houses? A real estate entrepreneur,
also known as, a joint venture catalyst can find
the right houses to invest in that will create
The solution to this investment challenge is a good
both cash flow and equity.
old fashion joint venture. The funding is all in place
to buy the single-family homes, but we will inject a
joint venture to solve the management piece and
2. Fix-up:
Again the Catalyst on the investment
allow the purchase of as many single-family homes
team will work to identify what needs to be
as desired.
fixed up and renovated so that the houses are
ready to attract great tenants. The Catalyst
The missing piece to this investment challenge is
will manage the rehab and construction phase
having an active and experienced catalyst to
to ensure a quality product is delivered on-time
manage the entire process.
and within the planned budget.
What needs to be
done to purchase single-family homes?