How do I find a partner?

Question

I really need some help! I been researching and studying real estate for about 7 months and now I’m ready to purchasing my first property. I have a couple of property that I’m interested in but don’t have the equity. I called several banks and hand money lenders but have not had much luck because I don’t have 2 years of tax history, not enough credit, and not enough experience. So much question is how do I find a good partner that could help me in this situation??

(Thank you so much in advance!!)

Jonathan Greene · Answer

If you "don’t have 2 years of tax history, not enough credit, and not enough experience" and no real estate experience, what do you have to offer to a partner in a real estate deal? What is your unique set of skills that would benefit the money end of deal with you? Too often people want partnerships because they don't have the money, but if the person with the money can just go buy your deal, what do they need you for? You have to bring something to the table - contracting, deal-finding, etc.

Patrick Menefee · Answer

@Edgar Daniel gonzalez it's important to be brutally honest with yourself about what you bring to the table and value yourself accordingly. Your profile says that you're a contractor and co-own a plumbing company...what is your role? Are you hands on doing the work, or are you managing the business?

Do you have experience managing tenants? Analyzing a deal? Do you have a track record of being able to do either of those, or do you have a network of people that can help you do so/learn to do so?

If as it sounds you're positioning yourself as the single point of contact for a cash investor who will otherwise be hands off, you need to have everything else absolutely locked down. Your ability to run the numbers and find a great deal should be unquestionable. You may not need to have experience managing tenants directly, but if not do you have a great property manager or network of property managers who you can hire? Do you know how to manage the property manager(s)?

Partnership is an incredibly valuable tool...almost my entire portfolio is built off of it. But I know exactly what I bring to the table and exactly what I'm looking for, and I have a network to plug into in order to produce the results that a hands off investor would expect.

Taking down an investment property requires 1) finding a good property, 2) doing a thorough analysis of current value, ARV, rental estimates, and rehab estimates, 3) getting the property under contract, 4) navigating the due diligence and closing process (either with a trusted agent or on your own if off market), 5) lining up all services and funding to close, 6) completing the rehab, 7) finding, screening, and placing qualified tenants at appropriate market rent, and 8) ongoing management of the property, the finances, the tenants, and the partnership

Before going further, answer this question - of those 8 items, in how many of them do you have enough experience and confidence that would justify someone entrusting you with tens or hundreds of thousands of dollars?

Hung Nguyen · Answer

@Edgar Daniel gonzalez maybe it’s a good time to look into seller financing with all the uncertainties going around.

Edgar Daniel gonzalez · Answer

@Nicole Heasley yes! I have join two in my local area so far and have attend a couple of virtual meetups in the pass 3 months!

Marlen Weber · Answer

@Edgar Daniel gonzalez you can't go wrong with networking. Meet with like minded folks and chat about your vision and goals. Attend local meetups (if possible), or even virtual ones as well.

Edgar Daniel gonzalez · Answer

I’m looking to invest in Columbia, South Carolina right now but would like to expand towards Charleston, Greenville, Myrtle beach area.

Nicole Heasley Beitenman · Answer

Network. Go to local REI meetups (when they're happening again, of course). Spend time here in the forums. Find virtual meetups while social distancing is still a thing.

Adam Blachnio · Answer

@Edgar Daniel gonzalez

If you have some "skin in a game" cash, you can always negotiate terms with Seller.

Or even without cash you can try Master Lease Agreement, to build your credibility????

Jay Helms · Answer

@Edgar Daniel gonzalez - how many people in your immediate circle have you talked to about partnering?

How do I find a partner?

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