An alliance is an agreement or friendship between two or more parties, made in order to advance common goals and to secure common interests. An investment property alliance can be structured between multiple parties in a real estate investment transaction in numerous ways. The alliance is usually motivated by cost reduction ,improved service and return on investment. Investment property alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by a real estate investment group’s integrated project team. There are a number of basic types of investment property alliances.
One of the most common is an investment specific alliance where a Limited Liability Company is formed among individual real estate investors. This type of investment property specific alliance occurs when two or more individuals agree to joint their funds for mutual investment property acquisition and management.
An investment property sales or marketing alliance occurs when two real estate companies agree to go to market together to promote complementary or ancillary services. This can take many forms with a multitude of participants such as tax deferred exchange companies, self directed IRA companies, Real estate investment associations, groups and real estate investment brokers to name a few.
A geographic-specific alliance is developed when two companies agree to jointly market or co-brand their investment opportunity in a specific geographic region. A geographic specific investment property alliance allows investment groups and brokers to leverage local expertise while gaining exposure to a wider audience. Investors benefit as they are able to gain access to opportunities that may offer a better return on investment than their local market.
A solution-specific investment property alliances occurs when two companies agree to jointly develop and sell a specific marketplace investment solution. Solution specific investment property alliance’s are sometimes worked out with developers and re-developers in an effort to bring investors to individual unit sales of investment grade inventory.
In many cases, alliances between individuals and companies can involve two or more categories or types of alliances.
Joint Venture Investment Property Alliance
In the real estate investment niche world of joint ventures, investment promotion, affiliate marketing and strategic alliances it can be overwhelming. If you are considering some sort of investment property alliance it could be a good idea to talk to a consulting company that understands the real estate investment niche and works with both entry level single family home investors to more sophisticated commercial and investment property exchange investors.
Ideal Location, Inc. is one such company, as a real estate investment consulting firm that embraces the total package of successful investment product development and strategic alliances. Working with both real estate investors and all parties to the real estate investment process Ideal Location, Inc can help facilitate investment property alliances. Over the years they have developed a premier investment network and have the experience, platform and technology to assist a multitude of investment property alliance needs . An Ideal Location investment consultant can be reached at 312.433.9300 x 20 to discuss your real estate investment alliance scenario.