5 Reasons for Engaging in Real Estate Partnerships (Other Than Money!)

by | BiggerPockets.com

Why should real estate investors consider partnering, even if they don’t need to?

Why do investors, families, and firms who don’t even need to partner up for financial reasons still choose this strategy for investing in real estate?

There are many reasons that real estate partnerships have perhaps been the longest running model of investment in our planet’s history. Some need to partner up to get started. Some offer partnership opportunities because they really need the capital others have. But there are better reasons to partner, too.

Download Your FREE guide to evicting a tenant!

We hope you never have to evict a tenant, but know it’s always wise to prepare for the worst. Navigating the legal and financial considerations of an eviction can be tricky, even for the most experienced landlords. Lucky for you, the experts at BiggerPockets have put together a FREE Guide to Evicting Tenants so you can protect your property and investments.

Click Here For Your Guide to Evicting Tenants

Reducing Investment Risk

Sam Zell’s definition of a partner is someone who shares the risk load. No investment of any type is 100 percent risk-free. If someone tells you it is, I’d advise for you to walk the other way. Having partners enables investors to diversify, to minimize downside potential from any disaster or market change at any given moment, and to provide for more consistent upside.


Related: 5 Top Tips for Creating a Mutually Beneficial Real Estate Partnership

Leveraging Other People’s Time

Leveraging other people’s money is very common, but leveraging their time can be far more valuable. It is a far rarer commodity than money or real estate. Real estate investing done well can be extremely time consuming. That’s true whether you are fixing and flipping houses or managing a portfolio of single family rentals. Anywhere that you can leverage other people’s time from sourcing properties to leasing to remodeling to management can be very beneficial.

Leveraging Minds

One thing I’ve learned from watching and studying the successes of others is that the best always leverage the minds of others. You’ll see that with Tony Robbins, Warren Buffett, Steve Jobs, Mark Zuckerberg, and top athletes like Kobe Bryant. There is so much to learn about real estate. There is the buying and selling side, mortgages and the banking system, appraisals, tenants and landlord laws, property management, repairs, maintenance and rehabs, and so much more. Each is its own industry, but to master this domain, you need to be great in all areas. And just when you think you know it all, the regulations and rules change. So to really operate at an excellent level, you’ve simply got to learn to leverage the best people in each of these areas.

On-the-Ground Help

Local expertise is invaluable in today’s real estate investment marketplace. It is becoming more necessary for many individuals not only to invest in the U.S. from abroad, but for Americans to invest in other states and cities. But even some of the biggest organizations have major blunders by not understanding the finer quirks and processes of the places they are investing in. This brings together both of the above points. It helps leverage both other people’s time and minds to create more safety, efficiency, and profitability in investing in the locations and properties with the best potential.


Related: The Biggest Real Estate Moguls Relied on Partnerships. Here’s Why You Should, Too.


It is perfectly possible to invest in real estate for yourself, by yourself. I’ve personally just found it’s a lot better done with others. Similarly, you can appreciate a great cup of coffee alone, a run on the beach by yourself, or a fantastic meal in a great restaurant on your own. But we all know that those things are way better to be enjoyed with someone else. That can mean simply online friends, though it’s great when you get to connect on a more personal level occasionally too. Many might find that their investment partners eventually become some of their best friends.

Going even beyond that, those who really want to accomplish goals bigger than themselves — such as revitalizing communities, implementing greener housing, and providing safe and healthy housing to people who need it — will find partners invaluable on their missions.

So where do you find them? You might find great people to partner up with through your attorney, at local real estate clubs and expos, or online via crowdfunding platforms, Meetup.com, or the BiggerPockets Forums.

Investors: Do you work with a partner? Why or why not?

Let me know with a comment!

About Author

Sterling White

With just under a decade of experience in the real estate industry, Sterling currently manages over $10MM in capital, which is deployed across a $26MM real estate portfolio made up of multifamily apartments and single-family homes. Through the company he co-founded, Holdfolio, he owns just under 400 units. Sterling was featured on the BiggerPockets Podcast and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single-family investing and apartment investing to wholesaling and scaling a business.


      • Douglas Skipworth

        It’s like that old African proverb, partnerships haven’t helped me go fast, but they have sure helped be go far. Partners who were strong where I was weak have been instrumental to me, and I know I have been very valuable to them, too. It’s a great two-way street when you find someone who can assist you while you are helping them. There’s nothing like it in the world.

  1. Bryan O.

    I absolutely love partnership deals. I got into one with a group because we had some money each, but not enough for a full deal. Now that I’m in it, I want to partner on all deals. I can’t emphasize enough what you said about leveraging other peoples’ minds. Great article.

  2. Ryan Dossey

    Awesome post. I can honestly say that several of the relationships I’ve developed are literally invaluable. There are relationships that will make you liquid profits. Then there are others where you’re given a world class education.

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here