Want to start investing, but stuck.

Want to start investing, but stuck.

Bay Area, CA · Member since 2019 · 8 posts · 5 votes
Hello everyone, my name is Jesse. I'll keep this as succinct as possible:

About me:

1. Licensed realtor since 2017; experience listing/selling property.
2. 10+ years of rental property management experience, very good at finding tenants that pay the rent on time, take care of the property, & generally stay long-term.
3. Experience working w/contractors/handymen, handling remodels, sourcing material, designing places from start to finish (trashed rentals to high end luxury homes), etc. 
4. Currently studying for broker license/not actively prospecting for new clients so don't have a steady stream of income at the moment but have some savings for investing

I have 2 questions:

1. Where can I find a mentor? I've been to some real estate meetups, but been unsuccessful. I know they say you can find one here - do you just put a post out or...? Do I even need a mentor?

2. If I find an investment property & want to partner w/someone to provide capital, how do I "structure the deal"? If the property is in CA, I'd be the selling agent & able to manage it/get it ready to rent out. Is structuring a deal basically drawing up an agreement that states who is responsible for what & how profits/losses are handled, setting up an LLC, or something else? Examples would be helpful!

Thank you in advance...open to any other advice as well.
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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
3y


Where can I find a mentor? message people here in the forums that are in your local market or find someone in your local market that is killing it at investing. 

Question 2) That's completely up to you. My personal take is all partnerships are not equal. One partner will be doing more work than the other. As long as you outline ahead of time each other's roles and responsibilities and both parties are aware and good with that then that's fine. It's up to you to find a partner that will complement what you are looking for. For example, If you have capital and no experience rehabbing and no access to deals find a partner that can rehab and find deals. 

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    1. don't "find a mentor."  just network, go to events, make friends.  go to more meetups.  expand the area you're looking in for meetups.  go to meetups an hour away if you have to.

    2. don't partner or do something complicated or exotic on your first deal.  it's not worth it.

    if the bay area is too expensive for you to get started in, find a market 1 or 2 or 3 hours away and start there.  there is just no substitute for being hands-on at the beginning.  yes, you can be successful long distance but i think that's as hard as it's ever been too.

    or house hack in the bay area (unless you can't for family reasons)

    hope this helps

  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y


    Where can I find a mentor? message people here in the forums that are in your local market or find someone in your local market that is killing it at investing. 

    Question 2) That's completely up to you. My personal take is all partnerships are not equal. One partner will be doing more work than the other. As long as you outline ahead of time each other's roles and responsibilities and both parties are aware and good with that then that's fine. It's up to you to find a partner that will complement what you are looking for. For example, If you have capital and no experience rehabbing and no access to deals find a partner that can rehab and find deals. 

  • Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    Regarding a partnership deal, try and find someone knowledgable in your area who has done deals like this and ask them how they structured it. Profit shares, responsibilities, terms, etc. 

  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    3y

    @Jesse D. All of my partnerships have been death traps. You’ll learn more going it alone and making all the decisions especially with your background.

    If you insist on a partnership please make a formalized partnership agreement and be sure to include Exit Strategy(ies) in the document. I have been to court with both of my partnerships for this reason and spent close to $80,000 dissolving them due to not having this planning in place.

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