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Michael Marcotte
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Tips for finding a good partner

Michael Marcotte
Posted Nov 18 2022, 17:33

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?

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Mason Hickman
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Mason Hickman
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Replied Nov 18 2022, 18:21

@Michael Marcotte

Similar mindset and that you're trying to go the same direction/place with your investments. 

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Eliott Elias#2 All Forums Contributor
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Eliott Elias#2 All Forums Contributor
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Replied Nov 18 2022, 21:23

Look for people who balance you out and share the same goals and moral ethics. The best partners are polar opposites and share the same vision 

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Nathan Gesner
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Nathan Gesner
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ModeratorReplied Nov 19 2022, 04:34
Quote from @Michael Marcotte:

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?


Someone with a different skill set but the same values and goals. You don't want to partner with another version of yourself because it increases your weaknesses. If you are a "sleep at the office to get the project done" person, you don't want to partner with the person that likes to only work three days a week and spends a lot of time watching the stock market at the office.

  • Property Manager Wyoming (#12599)

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Will Fraser
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Will Fraser
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Replied Nov 22 2022, 06:58

Triple RT what Nathan said above ^^

You need to have as much alignment as possible.  Specifically alignment on your views of God, the World, and The Work.  Being off-tilt on any of these can lead to tumultuous times eventually, while alignment in these will make everything lighter and easier.

Then, among those you have high alignment with, partner with diverse, yet focused skills.  Diverse (different from yours) yet focused (useful to the vision at hand).

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Nate Sanow
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Nate Sanow
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Replied Nov 22 2022, 07:12

Having someone willing to do a trial run, and have a mutually beneficial exit is underrated in my opinion. In reality the only people we partner with forever are our spouses. 

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Bob Stevens#2 Rehabbing & House Flipping Contributor
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Bob Stevens#2 Rehabbing & House Flipping Contributor
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Replied Nov 22 2022, 07:20
Quote from @Michael Marcotte:

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?

 Parner in what capacity? You have no experience so what are you bringing to the table, money ?  

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Leo Ray#3 General Real Estate Investing Contributor
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Leo Ray#3 General Real Estate Investing Contributor
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Replied Nov 22 2022, 09:41

@Michael Marcotte welcome to the SLC real estate market!

Before you go looking for a partner, I'd suggest you closely consider, and find the answers two questions:

1. "WHY do I want a partner?" Partnerships make RE investing exponentially more complex. With a partnership, you have a whole array of moving pieces that you don't have when you're flying solo (e.g.; cost responsibilities, profit sharing, decision making authorities, work responsibilities, contracts & corporate agreements, etc., etc.) Every single one of these moving pieces will cause more work for you, and every single one is a potential point of failure in your venture. Although partnerships can be useful for some investors, for inexperienced investors, they often cause more problems than they solve. Often, the only party benefitting from a partnership is the attorney raking in the legal fees to broker and create the agreements, contracts, etc.

Moreover, inexperienced investors often want a "partner" because they're (rightfully) intimidated by RE investing, and--because misery loves company--they feel more comfortable with a partner. Granted, it is more comfortable to take on a challenge with someone else at your side, but this instinct can lead an inexperienced investor to form an ill-advised partnership with another inexperienced investor (who is also intimidated, and who also wants the "support" or a partner). When that happens, now you have two people who have no clue what they're doing, tied at the hip--the blind leading the blind. As a real estate newbie, the only type of partnership that makes much sense is a partnership with someone who has all the real estate experience you currently lack (but need)--and this brings up a second question: 

2. If you're 100% sure you need and want a partner, the next question is: "What value am I bringing to the partnership?"  ...if you're not 100% clear on this, then a partnership will never materialize, and if it does materialize, it will likely fail. The value you bring might be in the form of capital, experience, access to deals, the ability to put in a lot of work, etc., etc., but you have to bring SOMETHING to the table.  ...regardless of what type of value you bring, it has to be sufficiently valuable for the partner to benefit (and if the partner is a highly experienced and successful RE investor, they ain't gonna come cheap).  

I'm constantly approached by beginning investors with no real estate experience who want to "partner" with me, or want me to "mentor" them, but who have zero idea how to make it worthwhile for me.  In most situations, "partnering" with or "mentoring" a beginning investor is code for "wasting my time trying to help someone who's constantly screwing up (because they're a beginner) and getting nothing in return".  Why should a high net-worth, highly experienced investor put their time, money, experience, reputation, and resources on the line for someone with no experience?  ...you'll have to answer that question if you want to figure out a partnership with anyone who brings any real value to the table.

Now, does this mean you should never partner with anyone, or you should give up on the idea of a partnership? No. It simply means that, if you want a partnership, you'll have to figure out answers to these types of questions, and you'll want to thoroughly educate yourself on partnerships before forming one.  I have partnered with, and have also mentored inexperienced aspiring RE investors in the past, but those arrangements were mutually beneficial, and the partner or mentee brought significant value to the table.

Good luck out there!

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John Williams
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John Williams
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Replied Nov 22 2022, 11:50

Start with your strengths... What are you good at? Where do you excel? Find someone who compliments your skills and adds value in areas where you are not skilled passionate.

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Richard Loniewski
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Richard Loniewski
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Replied Nov 23 2022, 07:09

Find someone who is highly motivated, willing to do whatever it takes to be successful. Not easy to break into RE investing these days, but the ones who succeed are driven and have a never give up attitude.

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Michael Marcotte
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Michael Marcotte
Replied Nov 23 2022, 22:13
Quote from @Bob Stevens:
Quote from @Michael Marcotte:

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?

 Parner in what capacity? You have no experience so what are you bringing to the table, money ?  


No. I guess i'm looking for a mentor. I do have time and a willingness to learn. How could i help an experienced investor?

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Michael Marcotte
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Michael Marcotte
Replied Nov 23 2022, 22:19
Quote from @Leo Ray:

@Michael Marcotte welcome to the SLC real estate market!

Before you go looking for a partner, I'd suggest you closely consider, and find the answers two questions:

1. "WHY do I want a partner?" Partnerships make RE investing exponentially more complex. With a partnership, you have a whole array of moving pieces that you don't have when you're flying solo (e.g.; cost responsibilities, profit sharing, decision making authorities, work responsibilities, contracts & corporate agreements, etc., etc.) Every single one of these moving pieces will cause more work for you, and every single one is a potential point of failure in your venture. Although partnerships can be useful for some investors, for inexperienced investors, they often cause more problems than they solve. Often, the only party benefitting from a partnership is the attorney raking in the legal fees to broker and create the agreements, contracts, etc.

Moreover, inexperienced investors often want a "partner" because they're (rightfully) intimidated by RE investing, and--because misery loves company--they feel more comfortable with a partner. Granted, it is more comfortable to take on a challenge with someone else at your side, but this instinct can lead an inexperienced investor to form an ill-advised partnership with another inexperienced investor (who is also intimidated, and who also wants the "support" or a partner). When that happens, now you have two people who have no clue what they're doing, tied at the hip--the blind leading the blind. As a real estate newbie, the only type of partnership that makes much sense is a partnership with someone who has all the real estate experience you currently lack (but need)--and this brings up a second question: 

2. If you're 100% sure you need and want a partner, the next question is: "What value am I bringing to the partnership?"  ...if you're not 100% clear on this, then a partnership will never materialize, and if it does materialize, it will likely fail. The value you bring might be in the form of capital, experience, access to deals, the ability to put in a lot of work, etc., etc., but you have to bring SOMETHING to the table.  ...regardless of what type of value you bring, it has to be sufficiently valuable for the partner to benefit (and if the partner is a highly experienced and successful RE investor, they ain't gonna come cheap).  

I'm constantly approached by beginning investors with no real estate experience who want to "partner" with me, or want me to "mentor" them, but who have zero idea how to make it worthwhile for me.  In most situations, "partnering" with or "mentoring" a beginning investor is code for "wasting my time trying to help someone who's constantly screwing up (because they're a beginner) and getting nothing in return".  Why should a high net-worth, highly experienced investor put their time, money, experience, reputation, and resources on the line for someone with no experience?  ...you'll have to answer that question if you want to figure out a partnership with anyone who brings any real value to the table.

Now, does this mean you should never partner with anyone, or you should give up on the idea of a partnership? No. It simply means that, if you want a partnership, you'll have to figure out answers to these types of questions, and you'll want to thoroughly educate yourself on partnerships before forming one.  I have partnered with, and have also mentored inexperienced aspiring RE investors in the past, but those arrangements were mutually beneficial, and the partner or mentee brought significant value to the table.

Good luck out there!


 This is extremely helpful, thanks!

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Bob Stevens#2 Rehabbing & House Flipping Contributor
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Bob Stevens#2 Rehabbing & House Flipping Contributor
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Replied Nov 24 2022, 05:05
Quote from @Michael Marcotte:
Quote from @Bob Stevens:
Quote from @Michael Marcotte:

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?

 Parner in what capacity? You have no experience so what are you bringing to the table, money ?  


No. I guess i'm looking for a mentor. I do have time and a willingness to learn. How could i help an experienced investor?


 Find them deals, they will pay you a fee, save, learn then go on your own 

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Steven Wilson#2 New Member Introductions Contributor
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Steven Wilson#2 New Member Introductions Contributor
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Replied Dec 1 2022, 12:00
Quote from @Michael Marcotte:

I'm new to real estate investing and i was wondering what kinds of qualities should i be looking for in a partner?

Hi Michael, I think it is first important to know what you are bringing to the table and what your strengths are. That way you can better identify what your weakness might be so that you can look for that in a partner. Like what everyone else has already said, know your goals and write out how you want to get there. That way you both can be on the same page. 
At the end of the day, you should see yourself doing better with that person than without them. 

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Kevin Crowell
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Kevin Crowell
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Replied Dec 5 2022, 04:02

Same goals and mindset as you, but different skills than you. You don't want a carbon copy of yourself. That way, you'll be able to bring a series of skills to the table and be able to get better together. You also want to have trust. It needs to feel right and be sure to go through due diligence, serious due diligence. You don't want to be left outside with nothing but your shirt. My thoughts. 

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Replied Dec 5 2022, 04:46

@Michael Marcotte

don't 'find a mentor.' go to REIA meetings, network, build relationships.