Alright first deal is done, money is in the bank and enjoying a nice glass of wine! I am looking at doing the next one and a friend reached out showing interest to possibly partner on a future deal. I am looking for pros and cons for teaming up with someone. I will say from my perspective they have capital that would allow us to work on a larger house with a higher ARV.
What experience do others have and how can I make it a success if we did go down this road?
Congrats on getting your first deal done! That is a huge first step.
I'm sure you've heard it before, but partnerships are like marriages. Don't just jump right to moving in together on the first date. Make sure that you "date" for a a little bit, check up on them and make sure that you can work with this person. Ideally, they would have skills that compliment your weaknesses and have a good working rapport. Not everyone with money will be a good partner, or a good partner for you.
That being said, business is a team sport. In my experience, I've not come across a massively successful business person who did it all themselves. If you want to grow and expand you will always have to have a partner or partners. But you may have to "kiss a few frogs" so to speak. ;-) And a good partner is going to do the same due diligence on you. So make sure you have a solid track record and proven results. One success is great, but a trend it does not make. I don't know your full situation, but it may behoove you to get up to 3-6 deals without a partner to show this track record.
Good luck! Keep us posted on how things go.
Chad thanks for the advice it makes a lot of sense.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you