To Go-it-Alone in Real Estate Investment or to Join a Real Estate Investment Group?

by Real Estate 08 May 2018

Real Estate

When it comes to investment, there is no sure way to go about it. One person will prefer the stock market, another will go for another avenue and you are thinking real estate is your best best. What you need to figure out is how to go about it.

You can go into it alone or you can join an investment group. Direct investment means finding a realtor near you, for example Norchar: Real Estate in Rochester, NY. First, you must understand what a real estate investment group is and what it does. Then you will be able to decide if that is the right fit for you.

What is it?

It is an organization which is involved in the construction or buying of groups of properties, which it then sells to investors like you as rental properties.

How does it work?

A real estate investment group offers the following services:

  • Finding tenants
  • Handling maintenance
  • Landlord and tenant representation
  • Valuation advisory
  • Land sales
  • Analyzing the market

The organization makes its money from the investors. They are required to pay a portion of their monthly rent proceeds to the real estate investment group.

The main advantages of working with an investment group are:

  • As an investor, you have the benefit of owning rentals without the hassles of managing them yourself. The group does that for its clients.
  • There is a provision for you and the other investors in the group to pool resources to cover mortgage payments should vacancies come up.

You can see the pros of having someone else take on the headache of managing your properties and tenant issues.

Going it alone :

There are certain advantages of direct real estate investment.

  • You do not answer to anyone.

The shots are yours to call and you do not have to deal with a fund manager. You make decisions like setting the rent price and how many properties you want to buy. You also veto your tenants and only allow the ones that fit your expectations in.

  • You save more on taxes.

You are able to write off depreciation and take a mortgage tax deduction. Going solo enables to save a lot on tax breaks.

  • Your investment returns are bigger.

Well, you are not sharing your rent proceeds with anyone. It’s all yours.

Whichever road you decide to take, there will be highs and lows. Most people hate to be answerable to anyone when it comes to matters concerning their private investments, but sometimes, this helps to keep you in check.  Some people need to have someone looking over their shoulder constantly.

Others are pretty disciplined and will not be swayed by instant gratification. There is also the fact that with a group, you are not involved in the running and management of your properties. However, if you have vetoed your tenants yourself, that may not be too much of a pain.

The decision is yours to make, whether you will seek out a reality that is close to you like Norchar: Real Estate in Rochester, NY to take you through the paces or you will get a real estate investment group and sit back to enjoy their services.

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Ariana Smith is a blogger who loves to write about anything that is related to business and marketing, She also has interest in entrepreneurship & Digital marketing world including social media & advertising.

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