How To Really Find a Money Partner (When You Are New to REI)

[Jonathan Greene]

I've been reading a lot of posts lately that follow this format - "I am just getting into real estate. I have no experience, but I've been reading a lot and listening to the podcasts. I don't have money to get into it myself, but I am looking for a money partner."

What?

Wait, don't freak out. I am trying to tell you how to make this post up there better. It's ok to be new and to want to use someone else's money, but if you don't have a value proposition on your end, why would someone give you money? A bank or a private lender or a hard money lender will give you money for a trade-off of a high interest rate and collateral in the property, but most people are asking for someone to partner with them without giving any background as to what they (the asker) bring to the table in the deal.

What skills do you have that can help an investor out and develop a relationship that could end up in some form of a partnership down the line? Do you have property management experience? Do you have a construction background? Do you have specialized work experience like plumbing, electrical, etc.? Do you have a real estate-adjacent profession like attorney, accountant? If none of those, what is your hustle worth? What are you willing to do? Will you bird dog? Will you analyze 15 properties a day? Will you get your RE license and be an investor's main showing agent, any time they want to see an REO on the market? How many REI events are you going to each month (pre-COVID)?

I know it's attractive, these forums and the thought of becoming an investor, but when you come into a pool of very experienced real estate investors and just say, "Hey everyone. Anyone want to invest with me?" and you give no real reasons to invest with you, other than you really like real estate, that's not a value add for a money partner and you are just wading in the small pool. Do you know how to find deals? Will you invest whatever limited capital you have into finding deals? Investors want deals and returns and value. What is your value proposition?