Partnering to Earn & Learn - How Would You Pitch This?

Question

I'm a new real estate investor, just starting out in the Houston area. I'm planning to attend a few of the REIA meet-and-greets in the area in the near future to start building a network of contacts, and I'm trying to figure out the best way to build that network. I want to learn the basics, meet new people, figure out how to pay for my first deal, find professionals and build a strong team, etc.

Although I am currently out of work (shout out to the oil & gas industry), I've got 15+ years of residential new construction and remodeling experience, and it seems to me that the combination of unemployed+construction experience+a group of people that deals in real estate might be something to look into.

I'm just curious about whether this will seem like an opportunity to other investors? What could I / should I offer that would make it an attractive partnership to a flipper? Buy-and-hold guy? Money guy? Realtor, insurance broker, CPA, etc? (I realize a CPA might not have any need for a General Contractor, but I'm throwing stuff out there to see what sticks.)

Thanks in advance for your input.

Naeem Kapasi · Answer

@Andrew TaylorSorry about hearing your job loss! If I were you, I'd go to a REIA and introduce myself as a guy with rehab experience and then try to find a partner who wants to rehab (but doesn't have a lot of experience) and has money. You guys can do a flip together. If you have any money to bring to the table, that would definitely help out in finding a partner as you'd also have som "skin" in the game.Or you can also partner with more experienced flippers, by bringing your time and energy to the table, doing work that your experienced partner does not have time to do.Good luck!

Andrew Taylor · Answer

Thanks for the tips, folks. @Tim Shin, I agree with you that my current strengths are time and energy. As of right now, I don't really have much else to bring to the table.That being said, I think construction/contracting might be something I could leverage if there are investors locally who could use somebody who knows that end of the business.

Tim Shin · Answer

Great points! To expand on that, what I think is an additional value is your time. You may want to find a W-2 flipper or wanna be flipper who can't drive for dollars, see neighborhoods, analyze trends, speak with residents, visit with CPAs, contractors, power team members etc during the day. You have something valuable which I don't as someone with a day job: the freedom to go do what you will with your day and handle day time business operations. That's what I think you're niche strength is.

Doug McLeod · Answer

As a buy & hold guy and wanna-try-it flipper, the three things I need most are deals where the numbers work, cash to purchase (hard money is great but puts me at a disadvantage vs cash buyers), and good long term financing. I've exhausted my conforming Fannie/Freddie backed loans (10) so the deal numbers must be better than every deal I've done to date to work at commercial/portfolio loan interest rates and shorter amortization periods.

Andrew Taylor · Answer

@Dennis Thompsonthat's good to hear - I hope the same thing is true in the Houston area. If so, I might find myself in a pretty good situation. I'm not sure exactly what this partnership arrangement might look like, but I'm going to keep sleeping on it and hope something comes to me. Worst case, I'll introduce myself as a contractor at the local REIA meetings I attend, hand out a bunch of cards, and see what happens.Worst case, nobody calls, and I'm no worse off than where I started, right?

Naeem Kapasi · Answer

@Andrew Taylorhehe sounds good my man!

Andrew Taylor · Answer

@Walker Seid, I was a technical writer for Halliburton and then Canrig. Pretty boring work, actually. I don't miss it. I do miss the paycheck ...

Walker Seid · Answer

what kind of work did you do in oil and gas?

Dennis Thompson · Answer

@Andrew Taylorin my market area (Annapolis, MD) good/experienced contractors are extremely in demand. Perhaps you could start from the construction side and start the always important contact building by offering your construction services to realtor/investors. Knowing the market is critical. In a business where pennies matter and schedule delays cost thousands of dollars you better know the market better than anyone else. For now start as the contractor and learn as much as you can about the market. BE the expert in construction. There is always value added by working with an expert. In my market, if you get the word out about your construction experience, the opportunities will find you. Best of luck in your new venture!Dennis Thompson

Albert Okagbue · Answer

@Andrew Taylor Hit me up. Maybe you can make it to my office and we can chat. I may come across people you can connect with. I'm a CPA in Houston. Tax Season is a bit crazy but I'll make time to meet you in the evening if you can do it.You definitely have something to offer. It takes time to build trust with people but you can start by meeting folks.