Co-investment in properties is a joint investment strategy where two or more buyers pool their funds to purchase a property together. This type of investment allows individuals or entities to combine their resources and share the financial risks and rewards of owning a property.
In a co-investment, each investor contributes a portion of the purchase price and shares in the ownership of the property. The purchasers may also share in the management of the property and the decision-making process regarding how the property is operated or sold. Depending on the terms of the co-investment, one purchaser may have a larger or smaller ownership stake than the other purchasers.
Co-investment can be an attractive option for purchasers who want to purchase properties that they may not be able to afford on their own. However, co-investment also has some potential drawbacks. Investors may have different investment goals or strategies, which could lead to disagreements over how the property is managed or sold. Additionally, purchasers may have differing levels of experience or expertise in real estate investing, which could impact the success of the investment.
It’s important for co-investors to have a clear understanding of the terms of the investment, including ownership structure, decision-making process, and potential returns, before entering into a co-investment agreement. Enso Realty has extensive experience in co-investment, speak to our representative to learn more.