Find Property or Investors First??
I've been studying and learning REI for about a year now. I am wanting to start with a few flips to generate some more capital to be able to get into some buy and hold properties. I'm building my team now - RE Agent, Contractors, etc and am wondering one thing. Should I start sourcing money partners to joint venture with now, or wait until I have a property? I am from Canada and one idea I have is to use RRSP money (Registered Retirement Savings Plan) to fund my purchase and reno needs. This allows PEOPLE to become the BANK and avoids so many complications - all while giving them a MUCH better return on their money than they are typically receiving - and all their profit is tax free as well. A great win-win situation! Anyway...I'm sure I am babbling as I tend to do that as I talk about this. What are your thoughts? Property or investors first??
VERY basic deal structure would be:
- 50/50 profit split
- minimum 15% return - but aim for 20%. I would even take a reduced profit to ensure all money partners received the minimum 15%, if needed, as I believe investors can and should be a lifetime relationship.
- projected timeline of 4-6 months (so if I can keep their money working for them via 2 flips per year they could earn 40% annually - all tax free!)
Thanks!
Kevin