Looking to partner with someone to scale.

[Trevone Williams]

I am a new investor looking to scale. I currently have one rental property. A SFH home. I currently live in Atlanta but decided on Birmingham as the area I want to invest in. I do have some capital to spend. Looking to partner with someone to partner with someone who has capital and experience to help scale. I'm currently looking at SFH to invest. Willing to do small multi family deals. (2-4 units). Thanks in advance for the help.

[Randall Alan]

Quote from @Trevone Williams:

I am a new investor looking to scale. I currently have one rental property. A SFH home. I currently live in Atlanta but decided on Birmingham as the area I want to invest in. I do have some capital to spend. Looking to partner with someone to partner with someone who has capital and experience to help scale. I'm currently looking at SFH to invest. Willing to do small multi family deals. (2-4 units). Thanks in advance for the help.

So I know you SAY you want a partner... but I might try to tell you that you might not.  Good ones are few and far between, and inevitably there will be differences of opinion.  You want to sell the house, he doesn't... what do you do?  You want to put in granite, he doesn't, what do you do.  If you are married to your partner, it's easier... sometimes... but not always.  I work with my wife full time on our portfolio, and we do pretty well... but even we get frustrated with each other regularly.  

My suggestion would be to figure out how to pull it off on your own.  With a partner you are giving up 50% of your income / profit to the other person... and no one will be as dedicated as yourself (from your perspective).  

Figure out what you really need, and figure out how to obtain it.  It's likely money, right?  Well... you have one property - maybe you can borrow from it (HELOC or cash out refi?).  Maybe you can sell your one and have enough resources (down payments) to buy two new properties?  You will be so far ahead if you can do it yourself.  

If you already have one property, you understand how 'the game' works.  Scaling is really not something so difficult that it requires more brain power of a partner.  Picking a different location does complicate things.  We personally only invest locally because we self-manage our portfolio, and going out of town/state simply adds a new layer of expenses with property management usually.  You will give up 1/3 of your profit to a property manager if your property is financed (by our calculations).  Why do that?  Every 1/3 adds up over time and with more properties.  We have 37 units.  If we had property management we would be giving up about $4,000 a month - that's $48,000 a year!  And I can tell you that even with that many properties it really isn't that tough if you have some simple systems in place.  For instance, our online property management system collects our rent, markets our properties, screens our tenants, tracks our expenses, just to name a few things (we use rentec direct in case you are wondering... but most of them do similar things).

A partner is also a new layer of complications.  Can it work out?  Sure!  Can you share the workload?  Sure!  But will it be more difficult than doing it yourself?  Bet you it will!

All the best!

Randy

[Trevone Williams]

Thanks for the response. Part of me was looking at it like 50% of something is better than 100% of nothing. I am still trying to find someone to do a HELOC on an investment property. Yes right now my struggle is getting enough capital to secure my next deal.

[Drew Sygit]

Suggest you publish under classifieds forum

[Eliott Elias]

Let this come organically, don't jump into deals with people you don't know. 

[Trawick Ellis]

I'm just north of Birmingham, in Gardendale. I'm getting ready to invest in my first BRRRR. I am not really looking to partner with anyone, though. But I think we might be able to network in some way. Message me if you want to.