Should I partner my FIRST wholesaling deal? or do it myself?

Should I partner my FIRST wholesaling deal? or do it myself?

Baltimore, MD · Member since 2017 · 199 posts · 56 votes

Hi,

I  am a newbie starting the process of wholesaling properties. I did a little driving for dollars and found some possibilities. My question is, should I try to partner with an investor/wholesaler on this potential deal or do it by myself? I feel like I could use a little help with it since i'm so new..ty!

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  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 130 posts · 69 votes
    8y

    Hey Jake,

    If you have a couple properties that you can acquire, I would work with an investor so you can share the risk/reward of the deals. You will also keep capital for the other opportunities if they come up quickly!

    Sounds like you'v got your ball rolling so keep the momentum! 

    Best of luck & Happy Holidays!

  • Baltimore, MD · Member since 2017 · 199 posts · 56 votes
    8y
    Originally posted by @Etienne Martel:

    Hey Jake,

    If you have a couple properties that you can acquire, I would work with an investor so you can share the risk/reward of the deals. You will also keep capital for the other opportunities if they come up quickly!

    Sounds like you'v got your ball rolling so keep the momentum! 

    Best of luck & Happy Holidays!

    Ty Etienne, I agree, sounds like a good way to mitigate risk at this point,..What is a usual split in a case like this if I would partner with him? how would it work especially if he may be the one buying the property to flip

  • Real Estate Investor/ Private Investigator · San Antonio, TX · Member since 2015 · 73 posts · 20 votes
    8y

    JV deals are a great way to learn about real estate investing....helps to learn the in's and out's and avoid common pitfalls when you are doing things alone.

  • Baltimore, MD · Member since 2017 · 199 posts · 56 votes
    8y
    Originally posted by @Hector Lozano:

    JV deals are a great way to learn about real estate investing....helps to learn the in's and out's and avoid common pitfalls when you are doing things alone.

    ty Hector, I am now really leaning towards doing that, thanks alot

  • Lender · Wildwood Crest, NJ · Member since 2017 · 317 posts · 56 votes
    8y

    If you are new to the construction trade then a partner is not a bad idea. If i can be of any help just let me know  !

  • Baltimore, MD · Member since 2017 · 199 posts · 56 votes
    8y
    Originally posted by @Michael Corso:

    If you are new to the construction trade then a partner is not a bad idea. If i can be of any help just let me know  !

     ty Michael, apprec it

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 130 posts · 69 votes
    8y

    @Jake K.,

    If one person found the deal, the usually get a bigger piece of the pie or will cover less financing than the person who did not find the deal. They can invest a larger piece of the up-front costs, then you can split the profits 50/50 in the end. (If it is a flip)

    You two are your own businesses, so as long as everybody feels that the split is fair and equal, then there is no problem!

    I hope this helped.

    Happy Holidays!

  • Baltimore, MD · Member since 2017 · 199 posts · 56 votes
    8y
    Originally posted by @Etienne Martel:

    @Jake K.,

    If one person found the deal, the usually get a bigger piece of the pie or will cover less financing than the person who did not find the deal. They can invest a larger piece of the up-front costs, then you can split the profits 50/50 in the end. (If it is a flip)

    You two are your own businesses, so as long as everybody feels that the split is fair and equal, then there is no problem!

    I hope this helped.

    Happy Holidays!

    Makes sense for a flip, although im planning to wholesale it, and use it as a learning experience, so maybe give up more profit??

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 130 posts · 69 votes
    8y

    @Jake K.,

    Do what you can to make both sides feel equal and talk with your partner about what he feels is equal as well. If one side feels taken-advantage-of, this will cause issues later down the road. You want to create long lasting relationships and partnerships for the future...you two may end up making millions together in the future!

  • Baltimore, MD · Member since 2017 · 199 posts · 56 votes
    8y
    Originally posted by @Etienne Martel:

    @Jake K.,

    Do what you can to make both sides feel equal and talk with your partner about what he feels is equal as well. If one side feels taken-advantage-of, this will cause issues later down the road. You want to create long lasting relationships and partnerships for the future...you two may end up making millions together in the future!

    Good advice, very true!

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