So you’ve noticed that a particular part of town has been picking up steam lately. Maybe a new highway is being built, a new school perhaps or a major new employer is relocating to the area with high paying jobs. You know in your heart that real estate will be a solid investment in and around that pool your funds together for real estatearea perhaps even for years to come but you’re not sure you want to take on the risk alone.

Besides, even if you did go ahead and visit your bank for a construction loan, loan fees and interest will reduce your profit once the home is sold. And you’re not exactly all that excited to pull the $200,000 it would take to build the new property.  What do you do?

The first thing you could do is nothing. You can just sit by and wait for other investors and developers to take advantage of the opportunity. But if you’re an investor then doing nothing really doesn’t pay out a very much, does it? But why don’t you both avoid the bank and its fees while at the same time using just a portion of your cash, not all of it. Why don’t you find some like-minded investors who can all pitch in their funds to finance the project?

It works. There’s no need to fly solo on an investment if you don’t have enough cash or aren’t willing to part with it. If you need $200,000 to build the new home, find 10 others with $20,000. Or four with $50,000. You get the idea, but you can avoid finance charges and all the headaches of obtaining a construction loan from a bank by paying cash from funds accumulated from you and your partners.

Of course, you’ll need a lot more than just money. You need plans and specs and a builder who can manage the project for you among other pieces to the real estate puzzle, but now the cash is no longer a problem when you and others bring your assets together.