Experienced Kansas City Construction Law Firm

Real estate for new and experienced investors

On Behalf of | May 31, 2016 | Commercial Real Estate, Condo Association, HOA

Experienced Missouri real estate investors and longtime conservative savers might be able to form an investing partnership that leaves each in a more profitable position than their previous investments have. A real estate investor may be looking at three main forms of investing. While a long-term mortgage for a rental property can be obtained with a loan from a traditional lender, a passive investor may fund it as well. For a wholesaling investor purchase-to-sale, funds are needed for just a day or so for the purchase and closing. The property then goes to the investor or to a retail buyer. Finally, fix and flip investing requires the investor to fund the purchase and rehab but can offer high returns at a moderate risk.

The saver in these scenarios probably has money in investments such as certificates of deposit and low-yielding stocks and bonds. The saver and the experienced investor might meet at a real estate investing club.

The two might collaborate on a fix and flip deal. The result of this would be that the saver might make around a year’s worth of savings in just three months’ time. Meanwhile, the experienced investor would also make a higher profit than usual because the saver may offer a better deal than the lender that the investor would usually use.

This is a simplified account of real estate investing, and in reality, anyone investing at any experience level might want to work with an attorney. Legal counsel can often guide inexperienced clients through their first real estate deal as well as work with an experienced investor on any unforeseen issues that arise from contract disputes or zoning issues.