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Hi There are many post here about people investing in real estate

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Thread replies: 17
Thread images: 2

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Hi

There are many post here about people investing in real estate to rent it out. Does anybody have any experience with buying parts of real estate? Can some one point me to some legal resouces about how something like that could be set up. Here is an example of how i want it to work:

Person A wants to invest in real estate. Real estate X is for sale for 1 000 000 internets. Person A only has 100 000 internets and would be happy to buy a 10th of real estate X. If 10 people with 100 000 internets get together they can buy the property and each own one 10th of it.

The way i see it you would have to start with some sort of contract that works like this. Can some one point me to some resources online where i can read up on this. I know those resources might contain legal stuff that do not apply in my country but i am sure it gives a good idea of what a contract like that should contain.
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REIT.
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>>1764535
There are also private deals people can buy into. Apartments often operate this way
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>>1764510
From what I heard it is worth "investing" in an apartment if you can rent it out for 1% monthly of what it cost you.

Since that is near impossible, it makes no sense to rent out properties when you can just invest that money into index fund ETFs or REITs (although I don't know why one would choose REIT over index fund).
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>>1764547
this

These kinds of deals definitely exist, though I don't know what they're called in English. They say you buy part of the building, but more often than not you buy a stake in a holding company whose sole purpose is owning and managing the building. So definitely look into the specifics, what your liability is, what the operating costs will be, etc.

It has always been hard for me to imagine the purpose of these arrangements. Sure, if you only own 1/10th of 10 appartments you're speading your risk around compared to owning only 1 appartment completely. But you're also paying for the management, don't have any kind of real control over anything, but still sholder a lot of risk exposure. At this point you may as well choose real estate investment funds or real estate investment trusts with the same kind of fees (potentially lower due to scaling effects) and much less risk. And if you want full control and save on fees there's no way around owning yourself. It's a weird middle ground, a kind of partnership but with strangers, which to me defeats the purpose and has no appeal.
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>>1764852
Yep I never understood it either. Just buy something yourself and you call the shots
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>>1764510

I only have some experience in real estate, but buying portions of a building/condo sounds silly.

However when a group of people get together and buy a large piece of land, that can be a very good investment. It's how my father made his living for 30 years. Usually the partners all get together and agree on individual percentages of the property and they all put their money in and buy it. Then they need an experienced commercial realtor to manage and develop that property, and eventually sell it at a profit.

My father was often able to get a piece of land for $5 million and sell it a few years later for $10 million.
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>>1764888

So you'll need the investors, a commercial realtor, and a lawyer to draw everything up.

You also need a LOT of trust. Despite the lawyers and paperwork, people trying to fuck other people is VERY common in large real estate deals. Very common.
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>>1764831
Im buying a house rent to own with 9 intetest for 10k. I rent it for $400 per month.
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>>1765356
0 interest. Fml
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>>1765356
How did you manage to buy a house for 10k and rent it out for $400 a month?
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there's a lot of nibbling around the edges here. i do commercial real estate development for a living. if i take the time to write something detailed up, will people care?
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>>1765494
>Im buying a house for 10k
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>>1765790
>>1765790
Yes! GO ahead please. We are dying to know. The question is "is it worth it for me to buy 1/10 of a house for 100 000 internets if the house is 1 000 000 internets? I could buy the whole thing myself but i don't have the monis" Thank you
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>>1765790
Also, is there a formula for what the house should cost depending on the rent income? Like "the price should be 10 times the yearly rent income". plus the premium for location.
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>>1765494
House is a shithole.

Small town.

Shit for jobs.

Local slumlords charge rape price.

Undercut them some and move in a faithful ex roomate i trust to not fuck my shit up.
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>>1765795
Nice shack. I will give u 10k cash.

Its almost as bad of shape as my shithole.
Thread posts: 17
Thread images: 2


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