Should get started in REI with a partner or no?

[Benjamin Blackburn]

Hello everyone,

I'm still in the early stages of gaining knowledge and trying to figure out what the best route for real estate is for me.  Well, I have a good friend of mine/college roommate/teammate that is also wanting to get into real estate.  This friend actually got drafted a couple of years back into the Major Leagues but is no longer playing ball anymore.  So he has a nice chunk of change to get started in a deal, he just has no credit what so ever and is really just wanting to partner.  Me, I have pretty good credit but the capital just isn't there.  He is a single individual and is still in school.  I am a married/father living in Houston with a F/T job. 

Should I partner with him to get things going? If so, i have no clue how that usually works?

Or should I just do it myself and start my own real estate portfolio for my family and I?

thank you very much

[Doug McLeod]

You might consider doing RE "on your own" with your friend as a private lender early on. That way you minimize the entanglement while still giving him returns he can't get elsewhere very easily (8-12% interest).  As you gain experience and he sees your track record, then it may make more sense for him to be an equity partner where he gets better returns but is also taking a bit more risk.  

Send me a colleague request if you want some tips on education/ mentoring opportunities in the Houston area.