Hello and goodevening,
My name is Jarlen, and I'm thinking of establishing a real-state investing business. I would like to know any ideas on how to establish one. My main concern is I have x amount of capital to invest but if I'm seeking for partners to join me in this journey what would be a good strategy as to how to get a group of investors to join my idea. How are the profits splits ? How are the initial investments establish ? Sorry if I sound a little Complicated. To make it simple " How do I Start a group of people to Invest with me".
better to be on your own. No partners. You can if you need to get loans from others wanting to where some of the profits of your new venture, but only loans.
I would first decide on an idea and start speaking to whomever would be the target customer or market. See if the idea is a good one and whether it really is filling a need. That doesn't cost anything but your time. Bringing on partners is like getting married. You really want to be sure. Almost 1/3 of all start ups fail because of the team, the other main reasons are running out of money and no market demand.
Another reason you want to vet your idea is that if it does prove to be a great idea and you do want to bring on a partner, you will have a better idea of who to bring on based on the idea you're pursuing.
My main idea now is rehabbing and flipping, and then afterwards hold off a couple property's for long term while they rent. Thanks for the advise.
@Jarlen Martinez Better to invest with partners...you can do a lot more. Just ask Henry Ford.
Start off slow, be thoughtful, and thoroughly study the process of successful house flipping. Develop a business plan. Once you have these items, a vision, and a few deals under your belt, you will have results to show investors and the credibility necessary for investors to trust you with their hard earned money.
If you wish to build a sizeable business, it is likely that investors and private money will be required at some point. I strongly encourage you to look at the latest BiggerPockets book as a way to start thinking about raising money: "The Book on Investing in Real Estate with No or Low Money Down."
Great Point. Thanks for your Advise.
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