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REIN,REIT,LP or JV? How to SPEND $250/mth

R

rick21

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5 Real Estate investment questions/thoughts how to spend $250/mth

Based on recent REINSPACE discussion, it would be helpful to get some feedback Pros and Cons to the following:

1) JOIN REIN – this would allow me to get some more focused education on Real Estate investing – but I would like to also take action. Currently after reading posts for a while I believe my investment philosophy would be closest to INVEST4PROFIT, even if at times he seems a bit too conservative, if you follow it, I believe you would have your best chance for profit! At this point it appears not too many of these properties exist so I may be educated, but spinning my wheels trying to find a deal.


2) INVEST IN A REIT – liquid, cash flow, potential for capital gains; however, no control and no real opportunity to learn??


3) INVEST IN A LIMITED PARTNERSHIP – a theme throughout the message board is quality property management. It seems to me that having limited liability, no management headaches, cash flow, and capital gain potential is what every investor is looking for. Is there the potential to learn and have any sort of control by investing in an LP verses a REIT? My thoughts are the LP brings one a little closer to the investment.


4) JV partner with current REIN members and others who might want to team up. Potential to learn and have some control. Better chance of finding a cash flow deal with more people looking; however, the best properties may go to the "insiders" leaving the not so good for me, until I established myself and JV`s realize their best option for a partner is me.


5) To bring a perspective to this post, (I hope it all makes sense as I have never posted before and I am not really familiar with the internet in general),

Lets assume I have the cost of REIN $250 / month to spend.

Join REIN learn, network, potential opportunities or borrow between $25,000 @12% and $37,500 @8% to invest in a REIT, Limited Partnership or JV.

What do you all think would be the money best spent at this time? I live in Vancouver and will always continue to read books and learn.
thanks
 
I`d absolutely say REIN, but there`s also potential for #4. Many people, myself included, cheerfully will bring a level of education to the deal. Personally, I think Don and Russell attract a lot of like-minded people to REIN who enjoy teaching others. It`s one of the reasons why this forum is one of the best around.
 
Join REIN hands down
I don`t think the other options are really an available to you.

1. you will meet many, many people and learn everything you need to do it right.

2. You are right about that, plus you don`t have the money ( if I understand it correctly)

3. Same as 2, you need money to invest in LP. If you are already paying 12% on borrowed money to invest, that makes it very tight (risky, speculation, a no no)

4. What do you have to offer? A JV partnership needs money and experience/expertise. Which one of the two partners are you?

REIN is a REAL education. It takes time,but it builds a solid foundation. If you are serious about going into real estate investing in the near future and want to do it right you have to seriously consider joining REIN.

Good luck to you,
 
how much cash IN ADDITION to $250/moth do you wish to invest in an LP, REIT, JV or your own deal ?

You need cash to do real estate !

How much TIME / month do you wish to invest in knowledge or action related to real estate ?

If less than 0 hours/month - do not join REIN .. consider JV, LP or REIT as they all are great options !

If over 20 then join REIN and do your own deals !
 
Wow Rick, great question, I think you read my mind!!! I have been toying with the idea of JV, LP or just doing it myself too. Can I throw one more wrench in.... I too am in Vancouver and I plan to join Rein; however, I believe there are only quarterly meetings here. Last summer I attended Quickstart in Calgary and put my RE investing on hold so my wife and I could move back to BC from Winnipeg. So my question to the BC REIN members out there: other than quarterly meetings are there other events that bring us together so the newbies like myself and Rick can speed up our learning process? My full time job doesn`t allow for me to fly to Alberta for a Friday night REIN meeting as I have to work every Saturday. What else would I be able to take advantage of by joining REIN?

Thanks,

Nick
 
First of all... Nick, with the exception of August, there are monthly meetings in Vancouver (actually in Coquitlam). However, you need to be a member to attend them.

Secondly... Rick, the others have said it very well. I would put that money as an investment in your future by joining REIN. You need to build up your experience and your cash reserves before you start investing on your own, even in single family homes.

You could do REIT`s; but, what will you learn? Who is going to act in your best interest? You called it correctly.

LPs... you will need deeper pockets for this. I get the sense that since you suggest it is one or the other, that your pockets are rather shallow right now.

JVing with other REIN members... initially, that is probably not an option for you. As Thomas points out, most of the other members will want to know what you have to bring to the table. You are going to need more than $250 per month in order to be taken seriously by another member. And riding on a REIN member`s coat tail is not going to teach you as much as joing REIN itself.

IMHO, joining REIN is the hands down winner.
 
Thanks for the feedback, I did expect that Join REIN would be suggested and I have read many of the comments supporting it, so that is not an issue. I can see the value. I only have two minor questions/concerns about joining, which I can discuss later. So for now I`ll just clarify some of the questions or comments asked above. Chris, I`ll contact you regarding #4.



Todor, I do invest, but I want to take more control of my investments, I only talked about the idea of borrowing the money for the REIT, LP or JV as I always consider the cost of my money and what alternatives I have to create a return.

I am somewhat experienced but by no means an expert. Over the years I have purchased 9 properties. I sold the last of my Real Estate investment portfolio in 2003, just before the boom. When I was buying the 1% idea worked i.e. $100,000 purchase price = $1000 rental income. Now it`s not even close, at least where I live. I am basically starting over in a totally new market.

Thomas, The $250 was a starting point to get a grasp of different options. I have lots of time and I have access to enough money to do a few of the right deals. Its just deciding what direction I want to pursue and what is truly the best use of my time. I have never invested in an LP – it almost seems too good to be true. I would like to explore it further to fully understand the potential they can offer me and I`m looking through your website and will contact your company. I do find LPs a little more confusing for some reason.

Nick after reading your other post I believe we are thinking very much alike.





Dan, thanks for the clear and direct response

Thanks to all your comments are appreciated!!
 
Thanks Gary and Dan for letting me know there are monthly meetings in BC. Actually, it`s perfect they are in coquitlam! I did check the calender before but I must have been doing something wrong.

Rick, I agree you and I seem to be in a very simliar position.

Good luck all, and I hope to see you soon.

Nick
 
I/We did the #1 and within 6 months #4 (JV`d with a current REIN member). Subsequently we have purchased 2 of our own properties. We felt that this would give a good start in RE investing and also a good way learn from a seasoned investor. We are now starting to attract JV money partners to invest in US. Hope this helps
 
QUOTE (vandriani @ Jul 24 2009, 09:35 AM) ...We are now starting to attract JV money partners to invest in US. ..

How do you structure US investments to avoid the 60%+ taxes payable on gains ??
 
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