So about this partner

9 Replies

A friend of mine has been into real estate investing for about as long as I have and we have worked together on other unrelated issues with loans and such. I realized that he has more connections than I do and he has a really good type A personality and loves starting things and taking action. I'm more of a planner and I don't have as many connections since I just moved into a new location. I'm in issue of how exactly I'm going to add value to his business. I've done few deals but I have access to a lot of information in regards to marketing, business management, mentors, and various things of that nature. So I'm hoping this is a way that I can add value without bringing a lot of capital. I'm new to investing compared to some and I'm completely comfortable splitting profits and gaining experience for later on when I need and want to work with other investors. If you were in my shoes, how would you add value?

Justin, this is a great question. Here are a couple ways that you could add value.

1)  Operations/Project Management:  I've found that most guys that are like your friend are awesome at starting things but not too great at completing them.  You could be the guy that comes in and makes sure that projects make it all the way through the process…whatever that might be.

2)  Knowledge:  Maybe you are great at analyzing a property and making sure that it is a good deal.

3) Finder: You could be the guy going out and finding properties.

Be creative and look at what skills you are good at.

Thank you so much. I was already kind of considering a few of those things. I really think I would enjoy going out and finding the great deals. I have all the tools here on BP and some others. Again, thanks so much. I hope to keep you all posted.

I love that you asked how you could add value. That's ultimately what we do as entrepreneurs: add value and solve problems.

You're in the right mindset and you will do well. I am looking forward to hearing your success stories :)

thank you! I will be meeting him tomorrow and we will be discussing our goals and skills and then develop a plan on what we will do, what we will need and what we have to do to achieve our goals.

I've been able to help my partner from states away while I was in the army and I was able to help him increase his productivity and give him questions that he never new to ask yet. Hopefully I will be able to act as an acquisition manager and help find good deals. Do I need to be a buyer to be an acquisition manager? 

@Justin Larpenteur I take it that your type A partner either can do work of rehab etc or find and lead crews for that end.  You are just the Perfect partner with all of your attributes, use them to find $$ and get with it.  You will need a very good contract for your team so everyone knows their duties and rewards.  On a side note;  I have found a friend and partner here on BP who is Type A just like me, we even have same birthdate just a FEW years apart.  He teaches me ideas and marketing as well as get job done while I find the deals and bring $. We are having Fun!  

@Johnsy DSouza you can search the site for "long distant partners" "Remote partners" etc and read the blogs and threads to get ideas you can do that well. 

If you have access to marketing then bring deals and take an equity split.  This is basically how my partnership started.  I knew marketing and was bringing in deals and my partner brought in the capital and rehab management knowledge.  He gave me a percentage of profit on every deal we did.  Within 12 months we were using private lenders and splitting deals 50/50.  You hit the nail on the head though, as long as you are bringing equal value it will stay a good partnership.

how did you meet your partner?

And I've been trying to learn how I raise capital. I'm understanding more about working with small community banks since i used to completely disregard them. I also want to see about getting a very small loan from one of my mentors to help develop that financial relationship with him. 

I would gladly do the same with anyone else here on BP as well. Like $500 with 10% ROI or something super simple and develop relationships here.

Once I find out exactly what the plan is I can pin point exactly where funds need to be directed to. I'm assuming right off it would be marketing.

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