New to Columbus, OH. To partner or not?

Question

Hi! My name is Holly and I just moved to Columbus in September. I have been wanting to buy and rehab houses for a while now and honestly, it’s time to take the plunge. I wanted to know if you think it’s smart to partner with an experienced person for my first deal or try it solo? I have bought and sold one home with very minimal risk and investment. Thank you in advance for any help or suggestions!

Matt Stewart · Answer

@Holly S.  When I started in 2007 the market was much different.  You had dozens of REO's coming on the market every week and not many were bidding on them.  Multiple offers were a rarity and you could put in lowball offers all day long until you found a good one.  I was very fortunate that the mistakes I made in the first couple years didn't hurt me too much because I was able to buy so low.

It's a much different market now.  Competition is fierce, margins are thin, and your risk tolerance needs to be higher.  It would be real easy to lose money on a deal now if you made just a few mistakes. I think in order to get started now and be successful over the long term you need every advantage you can get.  And if you're not partnering up, find a mentor or someone with experience you can get advice from.  Use every resource you can come up with.

Robert Ellis · Answer

Hi Holly! Welcome to Columbus and congrats on deciding to "take the plunge" and getting started with real estate investing! Investing in a new city can be challenging; getting familiar with areas, price per square foot, rehab costs, exit strategies etc...can sometimes feel like a ton of work but the best thing to do is connect with a good, well established real estate agent that has a proven track record of success and a lot of great reviews.  Good luck with everything!

Michael Hamby · Answer

Hi Holly,  I think it is absolutely a good idea to partner with an experienced investor.  As you know, mistakes can be deadly to a business in this industry and "You don't know, what you don't know."   However,  you'll have to make sure it's worth both your time and the investor's time.    Most experienced investors have figured out their businesses so you'll probably have to bring a deal to them.  Be sure to explain exactly what you are looking in a partner as well as how the profits will be split.

Richard Leyba tejada · Answer

@Holly S. Take your time be patient get to know people and build relationships while educating yourself here on BP

New to Columbus, OH. To partner or not?

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