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Rob Rowsell answered a caller who asked about which of two investing choices was the best arrangement. Should the caller choose a joint venture real estate deal or a syndication investment? Watch and learn which is the best scenario for your own property deal.

Real Estate Joint Venture Investment or SyndicationJoint Venture Real Estate Deal And Syndication Investment Compared

Our friend Gabriel asked Rob which factors dictated a joint venture real estate deal, rather than investing with a syndication. For example, could the number of units in the property play a role?

Instead, Rob feels like JV deals are appropriate whenever you can pitch in with competent, like minded friends. He shares his Christian faith with one group who he does Joint Venture investments with, although Rob welcomes non believers to his business circle. Faith in Christ just happens to be one of the common threads in the trust that bonds this group.

When is a Syndication property investment a better choice? Rob explains that if you contribute to multiple Joint Ventures, you will soon run out of money. Syndication investments do not require you to risk as much cash as a JV or become as directly involved. When you go into a Joint Venture, it’s all hands on deck amongst a small group to make sure all of the paperwork is signed and decisions are made.

So, which do you choose? Go with a smaller property and smaller team on a Joint Venture? You may get a greater return, but you will definitely work for it. A Syndication could reap a smaller reward, but will not require as much investment or effort. It all depends on your own financial situation, whether or not you have a close knit core group of investors, and what your goals are.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Rob Rowsell runs down what is in his real estate buy box. That is to say, what criteria every multifamily property must meet in order to interest him in buying it. Take a look at the population, amenities, and demographics when you’re looking to buy and fill rental properties.

What's in your real estate buy box for multifamily rental properties?What’s in Rob’s Real Estate Buy Box?

Rob has seen his share of ups and downs in the US real estate market. Thus, he has experienced his share of failures along the way to amassing wealth. Only through these hardships could he learn what he requires to fill his real estate buy box.

  1. City Population of 75,000 or More: Filling and staffing multifamily properties is very challenging in a population lower than 75k. The farther from a large metro area you search, the less competition you encounter, but that is for a good reason.
  2. Major Airport Within 30 Minutes of the Property: Nobody wants a long drive from the airport to inspect their properties. Due to reliability and available perks, Rob strongly prefers that the airport be a major international carrier.
  3. Job Growth of 3-5% Year Over Year
  4. Population Growth of 3-5% Year Over Year
  5. Building Contains 80 Units or More: This rule of thumb applies for syndications. Smaller complexes may make it into the buy box, but would likely need to involve a joint venture.
  6. Built No Earlier Than 1980
  7. 7% or More Average Cash On Cash Return Over the Life of the Deal: Knowing you can promise this figure to your investors is key to securing their trust.
  8. AAR of 20% Over the Life of the Deal: This means cash on cash amount combined with the increased equity at sale.
  9. No Coastal Properties and No Flood Zones: Nobody wants a letter of cancellation or arbitrary, huge increases from their insurance company. These are out of your control, so don’t risk it!

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!