First time RE investor in Chicago

[Anthony Bednarek]

Hey everyone!! Bigger pockets has been an awesome resource for me for the last 6 months or so and I think it’s finally time for me to get some real world experience. I’m 25 with ~100k salary before taxes and have a business partner that’s around the same. Unfortunately we’ve lost out on 3 multi units this year already to competing offers and i’m looking for some advice.

We’d ideally like to grab a multi unit if possible, but we don’t have the most capital at our backing to compete with these places getting 10, 20 and 30 offers at a time. Should we seek partnership with another person that could potentially fund a larger down payment? Or should we change our strategy to looking to flip condos? Hard time for a first time investor! 

[Allan C.]

@Anthony Bednarek be cautious partnering with another person. It’s hard enough making a 2 person partnership work, and adding more people complicates matters, especially if you are all very green to the business world.

I’d you decide to bring on a new partner, I suggest focusing on very short cycle deals (ie exit within a few years). Everyone’s motivations and personal situation changes over time, and that will cause issues for long term partnerships.

Also ensure you draft up a robust Operating Agreement.