Best way to get partners on board before finding a deal

[Logan Eckstein]

Hello, everybody!

I'm about to start investing in commercial multifamily properties and using passive partners to fund the down payment, closing costs, etc. I would be handling everything involved with closing the deal, hiring management, and increasing NOI. The investors would only be providing capital, and in exchange, they would receive the majority of equity in the deal.

I've read on the forums that it is best to look for investors and deals at the same time, which is what I've decided to do.

My question is, what is the best way to get a busy investor on board if I don't have a deal yet? I would present them with something similar to the above, emphasizing that they would have a completely passive role and would get the majority of the equity. Additionally, I would tell them the maximum purchase price I am looking for and the ROI I am expecting. What can I do to make partnering with me seem like an easy decision?

Sorry for what might be a loaded question, thanks as always!

[Chris Levarek]

@Logan Eckstein When raising capital for investment, credibility and trust are key. If you don't have credibility, or haven't done many deals, you lean more on the trust aspect. This is why many start with friends and family. The relationship and trust aspect are pre-established.

My recommendation is build the business plan. Find the deal and partner with experts who have credibility (other experienced investors, lenders, agents and/or attorneys). This builds your credibility. While doing this, speak with friends and family on what you are doing. Speak on your expert team and their experience. Once you get the first deal, the momentum builds but this is the typical way to get started.