Greetings all, first time poster on here.
My father owns two businesses that I'm currently working in. One is a CPA firm while the other is a real estate investment firm. At the moment I'm studying for my CPA whilst I divide my time between the two businesses.
I'm the sole individual in our family capable of taking over these businesses and they both generate very large incomes, so I want to do all I can to continue to build upon what my dad has created over these past few decades.
I love real estate and have been involved in that business on and off for the past 11 years. I only pivoted full time to the accounting and real estate 3 years ago. We own a few dozen properties across California, commercial and residential. I assist in acquisitions and management of the properties, and own a few residentials of my own.
My parents wanted to invest out of state and even out of the country but they never got around to it and it's been largely my dad working on his own for many years and to him, the CPA firm came first. I want to do what they didn't and take the real estate global.
With that said, I'm not 100% sure how to proceed. Essentially all of our acquisitions were made with cash and even though all the properties and the CPA firm generate lots of cash, it would still take years to purchase high-priced commercial properties. I was thinking of structuring a business around generating funds from outside investors and using their capital as well as ours to purchase assets, which each investor getting their share of the income relative to what they've invested in.
I have no idea how to even begin that process, however, or if that's even a viable business model for someone in our position. We could start using loans instead of paying cash and with debt so cheap, now would be the time I suppose.
I'm open to any suggestions on the matter and I appreciate your time.
What you are talking about is syndication. It's a very viable way to spread the risk and raise funds for new projects.
If I were you I'd start building connections with brokers and investors in markets that you want to enter. Real Estate is a connections business and you need to know the right people to get a good deal.
I'd also explore the possibility of incorporating debt into your investment strategy given rock bottom interest rates.
Thank you for the heads up on the name of the business model Colonizer, I will look into this and see how one would get started forming a syndication.
At the moment we're on pause regarding acquisitions and waiting to see what happens with the real estate market. There will be opportunities to pounce on.
You should be in attack mode, not putting a pause in all acquisitions. Once you see an opportunity (good deal) you should be ready to jump on it.
read a book on CRE maybe?
if you need an analyst, Iet me know
lmao hustle my guy. i respect the grind