JOINT VENTURE REAL ESTATE INVESTING JIM INGERSOLL
3. Property
Management:
The Catalyst is put
to work again, this
time to find and
screen the tenants
and then on-going
every
month
provide
to
property
management, rent
collection and re-
pairs.
Mr. Buffett, what would
a
good
catalyst
worth to you?
be
The
Catalyst is the active
member on the investment team that does 100%
the Lender and Mr. Catalyst be the dealmaker?
of all the work. The catalyst is critical in finding
Mr. Catalyst does all of the hard work in securing
you the right house, fixing it up and then
the houses, getting them fixed up, finding great
managing the property long-term. I think that a
tenants and managing the houses long-term while
good catalyst is well worth a 50% equity position
Mr. Buffett supplies all of the funding.
on the investment team.
Mr. Catalyst could be the formal owner of the
What does Mr. Buffett do? Warren Buffett does
houses and Mr. Buffett is the lender who injects the
what he does best which is supply the capital to
capital to make it happen. Each of them share the
buy the houses. He does no other work other
incoming rental income 50/50 and someday when
than supply funds. He is 100% passive and for
the houses are sold they share the upside equity
his share of the investment he retains a 50%
50/50.
equity position and will enjoy 50% of the net
rental income received.
This would provide Mr. Buffett a way to buy as
many houses as he wants without having to use
Now, could Mr. Catalyst and Mr. Buffett work
his own time and none of his energy wasted on
together? I think they would be the perfect joint
tenants or toilets. Mr. Catalyst does all of the work
venture partners.
and he receives half of the monthly income from
No, not formal partners in a
corporation sense, but how about Mr. Buffett be
the rent and half of the future equity upside. Mr.