Partnering with an Investor to Purchase Off-Market Portfolio via Seller Financing

[Reid Ervin]

Hello BiggerPockets community!

I have purchased an off-market property from an investor who now wants to sell the rest of his portfolio. The best part? The seller is open to seller financing, which presents an incredible opportunity to grow without traditional bank financing. The properties are well located in Denver with value add potential and all rents are currently well below market. 

However, there’s a catch—I’m looking to partner with an investor to help provide the capital needed to complete the deal (would need to raise around $200,000-500,000). While I can contribute some capital and sweat equity, I’ll need a partner to bring in additional funds to close the deal.

Here’s where I could really use your advice:

1. Best Practices for Finding a Partner
What are the most effective ways to find a solid investment partner? Is it this forum, meet-ups, or just reaching out and presenting the opportunity? I want someone who is not only financially capable but also shares my long-term vision for the properties and has experience with seller financing deals.

2. Vetting Potential Partners
Once I find a potential partner, what are some key questions I should ask or red flags I should look out for when vetting them? I’d love to hear about any successful (or not-so-successful) partnership experiences to learn from.

3. Structuring the Deal
What are some best practices when structuring a seller-financed deal with a partner? I want to make sure that both of us feel like the deal is fair and equitable for the risks and rewards involved.

Any guidance on how to approach these key questions would be greatly appreciated! I’m excited to make this opportunity a reality but want to ensure that I bring the right partner on board to make it a win-win situation.

Looking forward to hearing your thoughts and thank you in advance!