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Updated over 2 years ago on . Most recent reply

User Stats

120
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123
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George Red
123
Votes |
120
Posts

Building a team or going solo

George Red
Posted
Hey all, I'm relatively new to REI (own 3 duplexes at this point) and been hearing opinions on some of the BP podcasts about building a team for your REI ventures and doing JV's and partnerships. Curious if people find working independently more beneficial or if a faster path to growth is partnerships... it would seem that one way you own 100% and if you have 5 people in a deal you own 20%. From your experience is one method better than the other for growing your portfolio? They often have people on the podcast that have for ex. 350 units but they own a fraction of that as part of partnerships and syndication... not the 350 units themselves outright. Am I missing something, would they be in the same place if they had taken their money and invested on their own as opposed to through a partnership/JV or syndication, I hope this question makes sense.

I'm gearing up and keeping powder dry to utilize in the near future if the market keeps softening and welcome any information/opinions. Thanks in advance.

Most Popular Reply

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187
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Austin Johnson
  • Investor
  • Jefferson City, MO
174
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187
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Austin Johnson
  • Investor
  • Jefferson City, MO
Replied

why would I syndicate on a 350 unit and get a small split instead of investing myself on a smaller deal?
because real estate is a team sport. if it took me 5 months to close a 350 unit with a team, helping all my investors, helping all team members and developing an awesome community. I can rinse and repeat the process again and again and again while developing friendships and partnerships and contributing to the community at scale.

now, why would I do a small deal myself? and rely 100% on my own capital, my own credit score, my own experience to get the loan, my own liquidity to qualify? then be tied up with one deal till i can save up enough for a second deal. then a third. then a fourth. how long will that take? 
in order to tackle the beast that is large multifamily, the bank requires a lot of experience, liquid capital and overall networth. what if I don't have that?
I hope you're seeing the difference and im not just blabbing,lol. 

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