I have a successful property portfolio-how do I get investors?!

[Joe Delgrosso]

Over the last three years, I've invested in 5 single family/condo properties that generate an average cash on cash return of 14% in Knoxville, TN. I'm pretty happy with it and try to pat myself on the back for it - but I need to speed this up! This is a baby step in my larger goals. 

I'd love to bring on a passive investor to help move this faster. My thought is - who doesn't want a 14% return for a passive investment? "Fund the deals and we'll go 50/50 on another property portfolio of 5 properties and aim for the same return - the model is proven". 

However, I hate asking for money, but I know this is one of the only options to take my property portfolio to the next level. Any thoughts or stories on how others have approached getting passive investors? 

I know the normal BP responses of Brrrr'ing and other forms of lending - but this is the particular route I'm interested in hearing stories on if you have 'em! 

[Dylan B.]

Hey @Ralph Justiz wouldn't mind chiming in at all. 

@Joe Delgrosso  I have a couple partnerships that are 50/50 and I really haven't ran into any headaches.  I think why they have been successful is that we laid the ground rules up front.  Everyone was on the same page as to who was responsible for what (money, tasks, etc...)  Definitely have an Operating Agreement wrote up to cover all responsibilities and legal jargon.  One of my partnerships is pretty much me as the operator and them, essentially the passive investor, they have helped out with things in the past when I was unable to though.  We are entirely 50/50 and no longer adding properties to the portfolio. 

The other partnership I have, we have similar goals in life and want the same amount of rentals.  We balance each other out in the roles we play in our business.  We are also entirely 50/50 and continuing to add properties to our portfolio.