How would you go about finding a partner/investor for a deal?

How would you go about finding a partner/investor for a deal?

Member since 2021 · 6 posts · 6 votes

On an episode of the BiggerPockets podcast a while back I recall someone saying, "if you have a good deal, there will always be a way to finance it" (or something along those lines).

I was looking around at large multifamily properties currently for sale, But also trying to find the same type of properties off market. My question is, how do people partner with investors to come up with a down payment? I have confidence that I could negotiate and get a really good deal on a property, but with prices in Denver there's no way that I would be able to come up with a 20-25% down payment. Assuming all the numbers work, it appraises for more than what I'm paying, and it cashflows well, what would be the next step? What would a creative investor do if they had a great deal, but no way to come up with a down payment alone? How would you find a partner, and how would investor partners normally split ownership? Would they go 50/50? Is there a general rule of thumb on how to divide it? I'm sure there's plenty of options, and I would love to hear any feedback/thoughts!

Thanks!

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Lender · Denver, CO · Member since 2021 · 243 posts · 253 votes
4y

Hey, @Kyle Sewczak! Great question, and you're definitely in the right place if you're looking for a partner. Are you in Denver? If so, there are a lot of really great real estate meet-ups that you can check out and potentially find partners for. Or, do you have a friend, family member, or acquaintance that is interested in investing? Close relationships could be tough if things were to go sour but always worth finding out AND could be the way you get your foot in the door. Make sure you find a great lawyer to draw up a partnership agreement for you and clearly outline the roles of all parties in the partnership.

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  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    This is the perfect place to find partners and pitch equity type deals....

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y
    Quote from @Kyle Sewczak:

    .... "if you have a good deal, there will always be a way to finance it" (or something along those lines). 

    Here is how I look at it.

    If you have a "Good Deal" Risk vs Numbers and an attractive exit strategy timeline,

    AND

    You tie it up with Earnest money

    AND

    Due Diligence pans out good (after paying for it as needed).

    AND

    You know a handful of people who are "Accredited Investors" that are liquid in enough cash for your minimum buy in,

    AND

    Like the asset type, risk/reward, and exit timeline,

    AND

    they trust you and your team to accomplish the results you put forth

    AND 

    you have a lender lined up with loan

    You have a pretty good shot at closing...

    BUT

    ALWAYS having a way to finance it...not ALWAYS...I've seen things fall through the cracks due to the above AND's.

    How do you meet Accredited Investors....networking and talking to people.

    It's best to understand securities law and have a good Real Estate Securities Attorney.

    AND

    Dressing in a more business manner might help vs a hoodie which is ok for for hours.

    Just try to match what successful businessmen in your area wear.

    Good Luck!

    https://www.youtube.com/watch?v=pMUAwE3KXcg

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Find someone who is your polar opposite 

  • Lender · Denver, CO · Member since 2021 · 243 posts · 253 votes
    4y

    Hey, @Kyle Sewczak! Great question, and you're definitely in the right place if you're looking for a partner. Are you in Denver? If so, there are a lot of really great real estate meet-ups that you can check out and potentially find partners for. Or, do you have a friend, family member, or acquaintance that is interested in investing? Close relationships could be tough if things were to go sour but always worth finding out AND could be the way you get your foot in the door. Make sure you find a great lawyer to draw up a partnership agreement for you and clearly outline the roles of all parties in the partnership.

  • Member since 2021 · 6 posts · 6 votes
    4y

    Hi Kayla, I'm just north of Denver in the Longmont area! I appreciate your feedback, that helped a lot! Thanks!

  • Dan GuentherBusiness Member
    Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
    4y

    Hey Kyle, networking is key! I host a monthly meetup in Longmont. You should stop by next Friday if you are in town. 

    https://www.meetup.com/boulder...

  • Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    4y

    If you find a deal, I'm a buyer. 

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