Finding a Partner to Multiply Your Investing Ability

[Dale Osborn]

Many people involuntarily find themselves involved with real estate investing. They stumble around making all kinds of mistakes as they are looking for guidance or training to help them along their path to wealth. Sometimes they find assistance - other times they continue to stumble around the world of investing. At some point they reach a stone wall and realize that to make any further progress - they need to find someone to partner with. If you were in their shoes looking for a partner what would you look for? I have put together some items below, but know there are probably many more aspects to look at. Here is the skeleton assembled so far:

1. Skills of each potential partner
2. Credibility of each partner.
3. Trustworthiness of each partner.
4. Assembled team to do repairs/rehabs.
5. Knowledge/Experience of each partner.
6. Credit worthiness of each partner.
7. Who gets to be in charge to make the hard decisions?
8. What kind of percentage splits?

These are a few items to look for when looking for a partner - what would you add to the mix?

Along the same line, for a good partnership to work, it needs to be well outlined in writing before even doing anything else. If you cannot agree on how things will be set up it would be a waste of time being in a partnership with that person.

What would you place in your real estate investing partnership agreement?

[Ibrahim Hughes]

Originally posted by Chris Gabriel:

This is really interesting, because recently I've been thinking a lot about having a partner to share the workload, and grow the business. The problem is that I wouldn't have the faintest idea as to where to look. My guess is that most partnerships form on their own from past dealings with each other, as opposed to seeking out someone.

Those of you who have partners, how did yours form?

Chris - I just formed a new partnership with someone I wholesaled a deal with. I found the deal (my specialty) and he found the buyer. I can find buyers but I'd rather spend my time finding distressed sellers and resolving title issues. I feel that when people are able to focus on what they do best while developing (at their own pace) what they're not necessarily 'great' in, I think they can make more money and be more productive.

I didn't seek out my new partner nor was I looking for one. But strangely while shopping my wholesale deal I found myself wasting my time in a meeting with 2 clowns who swore they were ready to close only to find out THEY wanted to wholesale it. And do it retail at that (smh)! But one of the clowns, ironically, gave me the idea of partnering. I left the meeting and the first call I made was to my new partner who actually annoyed me when I first spoke with him 2 days before. I thought he was a bit rude at the time. Come to find out that was more of his strategy and personality when he deals with other investors. He's actually a really nice, spiritual and family oriented guy. And I felt his 'rough-around-the -edges' approach to the business would compliment my nice, patient and easy demeanor (it works great with distressed sellers). And honestly I grew a little tired of the Dr. Jeckel/Mr. Hyde persona I often find myself taking when wholesaling.

So far our partnership is great. We have a few more wholesale deals on the table we're working together plus planning and building our infrastructure. I see big things for our partnership in the near future. And it feels great to exchange ideas with someone experienced and visionary yet coming from a slightly different perspective at times. And I can finally concentrate on buying properties and really structuring that end of the business. It's tough being a 1-man operation. And I don't know too many people who are really successful at it. Most successful people I know in business have at least 1 partner.