I am new to the whole REI world and am very excited to hit the ground running. I have a plan that I have drawn up as to how I want to go about my investing but am still hesitant on starting it up. I have 2 people who would be a partner of mine, to help me fund my first buys. I want to start off with buying and holding at first then maybe go into flipping homes once I get some cash flow and stability. But without any real guidance by any one in my social group that shares the investing idea. Sorry if this is a common and annoying post, just trying to reach out to like minded people. Thanks!
It's just my personal opinion , but if it were me I would flip some house first and get a nest egg. After I had some cash saved I would buy some rentals w/o the partners.
First thing, learn RE, not RE strategies, you should know what an agent knows before putting other people's money at risk.
Then you can look at strategies and understand how different situations will call for different strategies, you'll be applying the basics you learned.
Before using partner's money, you need to define the partnership, the splits, profits, liabilities, what happens if someone drops dead, what happens in other situations and how you buy out other partners. You really should see an accountant and an attorney.
Then you'll be ready to go hunting, you'll be loaded for bear RE! Good luck :)
Yeah I enrolled in a RE school to get my license that starts the end of this month. Thanks for the advice. Both of the partners I was considering are both immediate family, but you both are right in that I want to learn more about it all before jumping in.
Not to discourage, however when I furst got my agent's license, in 1978, I was prepared to pass the licensing exam. And that's about it. Fortunately, I had no access to any sizable amount of money, lest I be dangerous.
It wasn't until I had a mentor who was seasoned and who taught me what was truly required to make a deal work.
Risking other people's money might be ok however I wouldn't do so without the money person having enough exoerience and expertise to keep you both out of harms way.
Working in the real estate business and investing or speculating are very different. Perhsps you'll find a suitable real estate company in your community to work for prior to risking family money and risking a very silent Sunday dinner.
I am "personally" not a big "partner fan". My husband And I are partners and that works great for me. I have help friends with numerous other endavours as a "no paid friend". Honestly that was stressful enough and I had no skin in the game or financial burden. So be reasonable about your expectations.
I graduated from my MBA program and got hired in management for a commercial/apartment community. That was amazingn because I got to learn AND it was with someone else money while having a w2 I come. There are lots of ways to get started and succeed!
Yeah I agree with everyone's comments and thanks for the great help. This isn't something I am going to dive into aimlessly.
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