Finding A KP On a Deal

[Christopher Munn]

Bigger Pockets Family,

I recently put in an offer on a deal in the midwest where I have another apartment building and it was accepted. I have been on the phone with some mortgage brokers today and much of the feedback has been that I will need to find KP's if I want a non-recourse loan.

The loan on my other property is recourse through a local bank.

The broker stated that both for net worth requirements and also for experience.

My question is for those who have done the same thing or maybe even for some who have been KPs on deals themselves.

What is the best way to target someone to join on as a KP on my deal?

I'll admit that I don't have a huge network. I went to inner city public schools and don't come from a lot of money. I hustle to get things done and I figured I could contact my local REI group. But wanted any advice from some veterans here.

Thanks as always

[Brian Burke]

@Christopher Munn don’t take this as raining on your parade but as just me trying to keep it real.  Both for you, and the thousands of people that will likely read this thread and use it to help plot their courses.

Real estate is a relationship business, no matter what anyone says. Trouble is, people mistake for a transactional business.

So the best way to take down a deal such as this is to build up your network and relationships before you score a deal bigger than you can handle.  Reason being, once you gave a big fish on your hook, the time allotted to you to reel it in is short.  

When I made my first real estate investment I was a broke 20 year old grocery store clerk with no relationships, money, or advanced knowledge.  Now I regularly buy stuff over $10 million.  But there was 29 years of relationship building between those two versions of me.

So network like hell and see if you can pull this off.  Worst case scenario if the deal falls through is you’ll have taken steps to build those relationships for when the next one comes around. Everything happens for a reason, so this could set you up for an amazing ride.  Just be realistic in realizing that the ride might not start today, but in the future, and accept either result as a win.