How to Start Building Wealth in Real Estate
Even if You Have Limited Resources
Have you wanted to invest in real estate, but been stymied by limited funds, time or knowledge? Now there is a solution. It’s the new Joint Ownership Program (JOP) organized by Landmark Properties.
Investing in real estate can sometimes be difficult due to the substantial amounts of money it takes to get going. Unlike investments in common stocks, many real estate investments require far larger financial resources to get started. To purchase a typical duplex in Sonoma County could take at least $100,000, and probably somewhat more, for down payment and closing costs. Even then, the amount of leverage (borrowing) would probably lead to a small negative cash flow from operations, requiring there be additional financial resources available.
To overcome this obstacle, and to help interested investors get started in real estate, Landmark is organizing small groups of investors who will pool their resources to jointly acquire investment properties none could afford alone. The investors will own the property as tenants in common, which is a fairly simple form of joint ownership, and it offers the individual owners the same benefits that real estate investors typically seek. The owners would agree on terms of the joint ownership arrangement, and incorporate these terms in a written agreement that would govern the ownership of the property.
A Stepping Stone
The primary motive of this JOP is to provide a first step on the real estate investment ladder for investors with limited resources and a desire to build their own real estate portfolio. After building some additional equity, many investors will choose to withdraw from the JOP in favor of sole ownership of their investment property. Provisions have been incorporated in the program to allow investors to use the JOP as a stepping-stone to future investment.
The Role of Landmark Properties
Landmark has developed a framework to guide the ownership of jointly owned property. In most cases a principal of Landmark will also make an investment and take an active role in each investment group. In this way the motives of each participant will be aligned.
If you have an interest in learning more, give us a call or send an email asking for the brochure describing more detail about the Joint Ownership Plan.
Your financial future is in your hands. Our goal is to be a helping hand.