What's the best way to find Equity or Limited Partners for a new developer?

[Gerrell King]

I'd like to begin building duplexes, triplexes, and fourplexes to hold and am looking for developers or investors with experience in doing so to partner with.  

I work for a homebuilder and have 4 years of land acquisition experience for single family and townhomes however I've never built any multifamily projects.   Can anyone provide any guidance or input on how to go about finding and chatting with potential equity or limited partners that would be interesting in working together?  

The partner would have experience and assist in funding deposits, floor plans, permits and fees, new construction/contractors.

The submarkets local to me are Los Angeles, Orange, and Riverside County in California, however I'm open to other feasible markets out of state as well. 

[Dylan Brown]

Hi Gerrel,

That's great ambition, transitioning your land acquisition skills into developing your own multi-family projects to hold! Finding the right equity or limited partners when you're starting out is a common challenge, but definitely achievable, especially with your background. Here are a few strategies for finding and connecting with potential partners:

1. Leverage Your Current Network: Don't underestimate the connections you've already made in your 4 years working for a homebuilder. Talk to colleagues (past and present), supervisors, brokers, lenders, contractors, architects, and engineers you've worked with. Let them know what you're planning. They might be interested themselves or know experienced investors/developers looking for new opportunities.
2. Real Estate Investment Associations (REIAs) & Meetups: Search for local REIA chapters in Los Angeles, Orange, and Riverside counties. Attend meetings consistently. There are often specific multi-family or developer-focused groups as well. Networking events are prime places to meet experienced individuals actively looking for deals.
3. Online Platforms & Forums: Besides forums like this one, utilize LinkedIn & X. Search for local developers, multi-family investors, and capital providers. Engage thoughtfully in relevant groups.
4. Industry Conferences & Events: Look for conferences focused on real estate development, multi-family investing, or private equity in real estate. While sometimes costly, they offer concentrated networking opportunities.
5. Professional Referrals: Ask commercial real estate brokers (especially those specializing in multi-family or land), real estate attorneys, and CPAs who work with developers/investors if they know anyone who might be a good fit.
6. Develop Your Pitch/Package: Even before you have a specific deal locked down, start putting together a clear presentation. Highlight your land acquisition experience (a valuable skill!), your strategy (duplexes to fourplexes to hold), target market knowledge, and what specifically you're looking for in a partner (experience, funding contribution, role definition). Be ready to articulate why someone should partner with you.

Adding to the above, deal structure and proper setup are critical for attracting partners and ensuring long-term success.

I'd be happy to chat further about how you can structure your deals to be more attractive to potential equity/limited partners. We can also discuss strategies for tax efficiency specific to development and holding rental properties, as well as setting up the robust financial recordkeeping systems that partners and lenders will require.

Getting your entities right from the start is crucial – you'll likely need specific structures for raising capital effectively and separate development entities designed for risk mitigation during construction. Getting this wrong can create headaches later.

If you'd like to connect and discuss these aspects, feel free to reach out. I also have recommendations for attorneys experienced in real estate development and syndication if you need them.

Best of luck with your search!