Building a parterships that Benefits Everyone!

[Paul Klaas]

Good Morning Everyone!

Wanted to canvas all of you and ask a question with regard to partnerships. My wife and I are newbie Long-Distance real estate investors. We like the idea of investing in starter homes in markets that are more affordable than So. Cal. We started researching online for areas we were interested in. As God would have it one of our close family friends reached out to us because they knew were hunting for good areas. They live in the mid-west and in a decent market. They are interested in buy and hold/ move in ready properties. We are using a HELOC to buy properties cash/ BRRRR. So while they purchase one property on their own, then start saving again for their next purchase, they would help bring us deals, then manage the properties for us. So their motivation to find us deals is based on the fact that they can manage the deals for us. Their parents are agents as well and have found us a deal we are offering on today! I would love to nurture this partnership by adding value to the deals in order to get the best deals shuttled in our direction. A mentor advised me to think about 50/50 splits in order to ensure that we are also, getting in on the first look deals or deals that have not been listed. Also, this would allow them more interest in taking good care of the properties since they would be invested as well.

My question is, how do I ensure I make this a good experience for everyone involved and motivate our friends to find deals, while simultaneously benefiting them financially.  I want a win-win here and would rather maintain our friendship, than cash-flow an extra $200 a month.  

Thanks Guys!

Paul Klaas