Think you can get ahead faster with a business partner? It is important to remember that approximately 80% of business partnership's don't work. The odd's are very high that any real estate group in which you are involved in may not survive. Cautiously enter into your investment group with watchful eyes. Here are some key factors to consider.
Make sure your goals and objectives are consistent with the rest of the group. Are you committed to working at all hours of the day to get the job done? Well, what about your partner? You know what skills you have. You know your strengths and your weaknesses. If your partners are your friends and relatives, you probably have a clear idea as to what skills they can bring to the table. However, when your joining an investment group of strangers, it's important to clarify exactly what, if any, skills they will bring to the overall collective objective. Sometimes your investors will simply put their money into the project and not actually participating in any work that needs to be completed.
Consider the liquidity of the investment. How quickly can you get your money out of your Fraser Valley Real Estate investment? You should not invest money you cannot afford to loose. This is the golden rule and it should be applied to real estate in all area's of the Fraser Valley and Lower Mainland area. For example: Richmond, Surrey, Coquitlam, Burnaby, New West, Langley and Abbotsford. In practical terms, most investments are tied up for the duration of the deal. This issue of course is a critical one. This has a direct correlation with liability of your investment. You want to avoid personal liability for any financial problems that can occur. If you are investing in a corporation that is holding the property for the group and the corporation has taken out a mortgage with a lender, the lender may require personal guarantees from the shareholders of the corporation. That would be YOU!
Consider… When investing with a group is getting out of control, how to get out? Why not a buy out! Make sure there is a procedure to follow before you get into a concrete group investment. Know the buy out terms before the money is put onto the table. Your Fraser Valley Real Estate investment should always be safe and secure. Whether your buying a condo, apartment, townhouse, house or mobile home in British Columbia, remember to cover you assets.
Shane Toews is a Licenced Realtor who helps others to educate themselves about current real estate issues. He also provides assistance on how to find quality homes, apartments or vacation rentals in Canada's Fraser Valley area.
Visit his website RentFraserValley.com for more information on Fraser Valley Homes and Apartments for Sale or Rent