I am new to the real estate investor world and need a little bit of advice. What do you look for in a partner? What are some standard agreements? What questions should I ask?
Scenario: There is an individual that I know from a professional group that I am a part of (nothing to do with real estate). He told me several months ago that his primary job is real estate investing. He partners with investors to buy and sell properties. I called him up the other day to ask some advice on a house that my wife and I are selling. Through a series of conversations, we began talking about working together (flipping) and splitting the profit 50/50. He has been doing this work for over 20 years.
What are some good questions to ask him? What red flags should I be looking for?
Thanks in advance...
I guess the first question I would ask ( myself included if I were you ) why would a 20yr seasoned investor want to partner and split profits 50/50 with someone who is completely new? I dont know this person at all but I have a hard time he is wanting to act the part of mentor, at least for free.
Or maybe he is interested in partnering with you only for the fact that you have the house for sale.
I genuinely think that he wants to help me out. When I called him for advice on the home we are selling, I was asking about his ups and downs of being a landlord. As we talked, he gave me other ideas like doing an owner finance deal instead. We have known each other for over a year and this is the first time we've talked real estate.
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