Partnerships in Real Estate Investing

[Anthony Van Gilder]

What is the best way to start looking for someone to partner up with on a deal? Being a new investor what is the best way I can add value to that partnership?

[Mark Trebor]

Hi Anthony,

I started my real estate adventure with a total of 4 like minded people, 1 long time friend and 2 relatively new co-workers.

We all graduated from college at the same time but different schools and all wound up working together.  We quickly realized that working for the "man" our entire life did not sound all that appealing.  We started an investment club, We started with each putting in $500 and then $100/mnth eventually we bumped that up to $150/mnth.  After 7 years we had enough money to put a down payment on our first house. That was 12 years ago!  Since buying our first house, one partner was bought out, we learned his heart was not in it, but he was a good guy.  There are now just three of us and we have around 5M in property our initial investments have been paid back and we have positive cash flow each month so we have no personally money in the company any more and we get a pay check I still have my W-2 job but the second pay check makes life a little easier.  So the moral of the story find some like minded people and see how well you work together take that time to plan for the future who has what strengths and weaknesses and do your goals align.  Or you can just mortgage everything and jump head first and see what happens.  I do believe there is some merit to that approach as well, the biggest obstacle is your first deal. After buying 3 or 4 houses you just ask where to sign and its no big deal.  We don't even look at the houses with our own eyes anymore, the realtor goes through videos them shares them with us we discuss the offer price and we either get the house or we don't.  No emotional attachment to the deal, the house has to make money or we walk.  Good luck.