Equity partner

7 Replies

Good morning! What's the BEST way (if any) to find an equity partner? Just good ol' fashioned networking or is a hard money lender more realistic? Thanks!

Hmm... I guess that it depends on the situation. I have no long term equity partners but have worked with a few for specific ventures. My experience is that a Great Deal draws interest. Network now as much as possible (I like LinkedIn Groups.) Get a great deal under contract and let everyone you can know about it. Make sure there is at least a 30% ROI so there is plenty of money/equity to split profitably. Most people don't want to put in $100k to get $105K back in 6 months (although 10% annual is decent for a passive position if the risk is accounted for.)

Build as much credibility as possible. Show diligence and professionalism. Figure as many risks/liabilities as possible. Create multiple exit strategies. Thoroughly figure holding costs, expenses, rehab costs, and build in a fudge-factor for unforeseeable hurdles (labor issues, material issues, unexpected problems, etc.) Create a thorough Summary and Scope of Work with Hard Data. If there's money to be made, someone will want to get involved.

@Matt Good  

I am here in PDX and I provide capital for JV deals. if you have something cooking please run it by me and I will let you know if I will fund it.. its as easy as this on BP...

I am building out in Wood Village right now and have a 27 lot subdivision underconstruction in Gresham so pretty invested here.

Originally posted by @Jay Hinrichs :

@Matt Good 

I am here in PDX and I provide capital for JV deals. if you have something cooking please run it by me and I will let you know if I will fund it.. its as easy as this on BP...

I am building out in Wood Village right now and have a 27 lot subdivision underconstruction in Gresham so pretty invested here.

 Jay, that is ABSOLUTELY exciting to read! I had NO idea that BP could be that effective! I currently have "nothing cooking" per say but I will definitely not shy away from throwing a good deal your way in the near future! :-) Thank you so much!!

Jay...Do you only JV for deals in your area? I'm looking for an equity partner for a mixed used commercial property in WI. Looking for $90K toward a $350K purchase. Offering 10-15% return. Know of any lender that may be interested?

Make yourself a regular on this site. Build a presence, offer value to those around you, and when you get a great deal, throw it out and see if anyone is interested. Find local REI groups in your area and join then and begin networking there as well. You can never network too much!

I would love a partner for my first rental I'm in st.louis. I wanna put 65000 down is that enough?

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