With a halfway decent credit score and a steady paycheck, most people can get a home loan. The median home listing price in America today is a little over $200,000, which may or may not be in your budget. If, however, you only needed to come up with $100,000, buying a property would definitely be in reach for so many people! That $100,000 could easily be $1 million, however, if only you had nine friends who also came to the party with their $100,000. That’s just old fashioned group economics and the “how,” when it comes to real estate.
No one can do it all alone. Black people, especially, need each other in every aspect of business and investing. To buy a $1 million property is a wonderful goal and with a good strategy, that property could be extremely lucrative. Few people, however, have $1 million laying around and getting a loan for that amount is a tall order. $100,000, however, is way more manageable and with a group economics approach, that $100,000 can bring back the returns of a $1 million investment. Here are just a few ways you could spend that $1 million and see serious returns, if you and nine of your friends work together:
Condo Building
Why scrape to buy a condo when you and nine friends can buy an entire building? Depending on what area you live in, it’s possible to find a 12-unit building that could be purchased for $1 million or less. Each of you could live in a unit and rent out the others, helping to mitigate your costs each month.
Office and Retail Strip
Retailers, restaurants and insurance agencies all have one thing in common: they all need somewhere to operate. If you and your friends got together and purchased a small plaza or strip of commercial units, you would be in a position to lease that space to them. Over time, you all would be in a position to take in steady income each month and also contribute to local economic development.
Vacation Rental Property
A $1 million beach property would generate a lot of cash each year, if you could afford it. A luxury cabin in the mountains can also net great returns, year after year. Rather than planning a great vacation with friends, get together and buy a vacation property to rent out– that’ll position you all to take lots of vacations, together in the future.
$1 million dollars in real estate can change your life, quickly. It might seem like a huge obstacle but that’s only because you’re going at it alone. Group economics is not only a good idea for solidarity but it’s also very lucrative. Let’s all make it a lifestyle this year and watch the returns roll in.
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