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Simple Joint Ventures Let Doctors Own Their Office Spaces

A lot of people watch Billions or Suits and get conned into thinking they need to come up with some incredibly clever business strategy to succeed Couldn't be farther from the truth My mentor started off investing in office buildings Purely by happenstance he ended up buying a medical office building During this acquisition and subsequent asset management process, he realized there was an under-served market Many doctors were dissatisfied with their current real estate situation. They were tired of landlords and wanted to own their buildings However, they were severely capital-constrained (many of them still with medical school debt) and knew next to nothing about real estate Mentor proposed that they form a joint venture and buy the buildings together. The docs would own a large portion of the building and be the LPs while he would own a small portion and be the GP. They would stay as tenants in the building A simple solution that benefited everyone The doctors got to be their own landlords and reap the reward of any potential appreciation My mentor got to acquire quality medical buildings for a decent basis (lot of negotiating leverage if the current tenant is buying with you) with high caliber tenants who will never leave Does this strategy allow you to niche down? Absolutely Is this strategy complex? Not at all Does this give you an "edge" over the market that will lead to outsized returns? You'd better believe it (aside from the good acquisition basis, you know the building vacancy will be ~0%) So, in addition to the obvious, there are a few takeaways you should walk away with As strange as it sounds, typically you don't find niches. Niches find you A lot of "edges" in RE aren't even "RE" related. They have more to do with creative deal structure and people skills