Finding an Investor Partner
Today I watched a BiggerPockets podcast with 2 investors who created a partnership to start their real estate business. One important thing that they mentioned is that the two people who form a partnership must have the same interest in a certain investing strategy, such as buying and holding or flipping, which I agree with 100%. I am interested in starting my real estate business as a MF buy and hold investor. I attempted to find an investor partner on craigslist (as advised by other BP members) but instead I ended up finding a great mentor to help me analyze deals and the other guy was a potential partner but he's hard to get in contact with because he is very busy and always working. I am in the process of purchasing my first duplex that I am going to owner occupy but I want to work with a partner that is also interested in buy and hold investing in Tampa and has a few deals under their belt that can help build my rental portfolio. Any suggestions??
Aryelle Collins good luck and it's great to see you take action!
Originally posted by @Aryelle Collins:
Today I watched a BiggerPockets podcast with 2 investors who created a partnership to start their real estate business. One important thing that they mentioned is that the two people who form a partnership must have the same interest in a certain investing strategy, such as buying and holding or flipping, which I agree with 100%. I am interested in starting my real estate business as a MF buy and hold investor. I attempted to find an investor partner on craigslist (as advised by other BP members) but instead I ended up finding a great mentor to help me analyze deals and the other guy was a potential partner but he's hard to get in contact with because he is very busy and always working. I am in the process of purchasing my first duplex that I am going to owner occupy but I want to work with a partner that is also interested in buy and hold investing in Tampa and has a few deals under their belt that can help build my rental portfolio. Any suggestions??
Certainly, the right space to find your answer..... much luck on your investment success.
Thank you! @Account Closed
@Steven Gesis What makes you choose Tampa? And not Jacksonville?
I never would have thought to use craigslist to find like minded investors who want to dive in together on a deal that's local.
That's not a bad idea!
Ill have to post something in the real estate section here and see if I get any hits.
@Aryelle Collins what are you looking for in a partner. A 50/50 work/profit split? I am looking at getting into duplexes and multi families myself and though I only have a few deals under my belt and a few current projects I still have not been able to hold my own property. This should change once I finish one of my flips. I would be interested in seeing how you would like to structure a partnership.
Hmmm, I am a Jax guy looking at getting into multis as well. Feel free to PM me.
@Anthony Wienke I thought it was a great idea as well, I hope you find great people who can help you!
@Kevin Mika I want to structure a partnership where my partner and I look for off market properties and wholesale them as a way to raise capital for the down payment on the MF properties, which we would go half on with. Or if my partner has money to put up for the down payment now I will be the one doing all the work as for as finding the property, presenting them an analysis of the deal, and we can establish a contract on how the profits will be split when we start working together. I'm willing to work as hard as I have to in order to get the job done and also eager to perform everything I've learned so far about real estate.
I highly suggest investing in multiple geographic locations. Investors tend to invest near where they live because they believe it just makes everything easier, and often that's true. But with communication technology as it is today, managing anything across a distance is becoming less of a problem.
The reason for my suggestion is because property investing has some basic things in common with any investment, primarily risk. With a stock market portfolio, one of the most important things you can do is diversify your investments. The same holds true for real estate. If you buy all your investments in a small region, ALL of your investments are at risk from anything harmful that might happen in that region. Floods, hurricanes, tornados, localized economic downturns, property tax increases, etc, etc. If you own $1 in property in a certain city or county, imagine what a 5% increase in property taxes would do to your cah flow. That's a $50k hit, with nothing to show for it. And if your properties are financed and you're still paying mortgages, that could be huge.
The way to do this is by using good property management firm(s). We charge 8% of rent, which in the property tax example doesn't put you on top. But with a second increase you're starting to come out ahead, and with a natural disaster of any time, that 8% is nothing compared to losing your entire portfolio overnight. Just something to consider as you're growing.
Thanks for the advice @Ryan Tucker I agree with you but having a partner in that other location who knows the area better that I do would make me feel comfortable but I love the idea!
@Aryelle Collins that's exactly what I do. Reach out when youre ready to diversify. -Ryan
I will keep you in mind Ryan thank you! @Ryan Tucker
It's inspiring seeing people take action and finding new and creative ways to get to their goals through things like partnerships and mutually beneficial relationships.
Keep up the good work and keep us posted on your success.
Much love,
-Ambitious Novice
I definitely will @Yair Coronel!
@ryan tucker is 8% a good market average for a management service?
Is there a minimum units?
Ryan Tucker why is your contact blocked on BP? Is there a way to message you if your stuff is blocked?
I'm interested in TN
Good day people of life. My name is Darrin Cravens. I'm a 20yr veteran in building to demo of homes & everything in between. I have a Facebook of my work from start to finish in most jobs depending on the situation at hand. I have a business opportunity or point me in a direction if possible? My family and I have a home, that we have had a contract to purchase & work on. Needless to say that the morgage company bought it back $67,000 in sheriff sale in was there but couldn't buy it. So we filed lien but didn't nothing do cuz of legal action. But did win Civil suit against scammer. But Idk if we would qualify for loan? Needing to see about owner occupied or something? Or a lil around or education? I've always been on the construction side not the buying side. But I know budgets! The other is commercial proposition I've found a very accessible building for $225,000 it appraised for $402,000 in 2012-13. With a aprox 1acre & 9000 sqft building that used to be a cabinet shop. We want to purchase to make a tire barn for its busy location & no Tire shop but one town south & there's a intersection that connects 3+ towns great for business we have a gentleman in Oklahoma city selling me everything he's got for $6K. & I have all picks of everything & that comes with everything you need to open doors to set up & start making a return..so with that being said we have already got connections on tires & ect all we need is a lender? & we can have some stability & structure I have references and qualifications to support everything I'm posting! Please can anyone help? My wife is disabled & we have a 3yr old but I have a great location & experience just need a lift? If you've read this much then you have heart sometimes you need a boost as well anymore it's about who ya know not always what you know? Thanks Hello sir. Here's my link to my portfolio so you can see my work. In case you can't find anyone?
https://www.facebook.com/Double-D-Construction-462...
This is my portfolio on Facebook. I take care of my customers but there are some that don't pay their bills & I've had to file paperwork or I am in the process of it. I work hard my portfolio will show. I believe that tire shop will open more employment & help my community. God bless...
@Aaron Vergason I got your message, thanks. 8% is a good rate, probably in the "average" range. We provide a lot of services for property owners at that rate. We have an online Owner's Portal where owners can track their properties. We have a full-time resource dedicated to marketing & leasing properties so they have minimal vacancy. We have another dedicated resource covering maintenance 24x7. Our Director of Property Management is personally involved in bringing new owners on-board so it goes as smoothly as possible. And our Investment Team Lead also gets involved with properties purchased from us because those properties are fully rehabbed so he often covers any maintenance costs that pop up during the first year. We expect our properties to have virtually ZERO maintenance/repair costs for a minimum of 1 year from purchase, but they usually have multiple years of very low maintenance/repair costs.
There is no minimum number of units. We have clients who own one property and others who have multiple dozens. We manage about 600 properties in and around Memphis right now, and were in a growth mode.
Let me know what you have in mind and I can bring our PM Director into the conversation.
Ryan
Hi Ryan,
My name is Mandisa and a new in the property investment game. I would like to start building a portfolio of investment properties which can bring me a good return. However, I would like to acquire the properties via private cash investors who simply want a good return on their money after a certain period without them necessarily owning the property. This means I would need to focus on acquiring properties for less than market value such as foreclosures. You sound like a good team for me to work with in Memphis. How would you suggest I reach out to private cash investors in a way that will convince them, how do I structure the proposal / pitch in this regard. What would be the process involved and would you be able to provide me with an inventory of such properties, including the numbers, that I can start working with and we can agree on how to work together in this regard. I would need to structure the deals in a win/win way.
I was introduced to the Memphis area as a good investment area by somebody who is investing in the rental market.
Hi Mandisa. Sorry for taking so long to get back in touch. I had a trip out of country then a vacation with the family and I just haven't been on here at all lately. I'd be happy to work with you on what you have in mind. Can we get on the phone soon and talk? Let me know if that sounds interesting and we can plan a call to discuss. Thanks. -Ryan
Speak with as many people as you can about what you're doing. Attention local REIAs and network here.
Congrats on finding a mentor! If you present a good deal on the bp marketplace, you could attract someone willing to partner with you on the deal