Partnership Investing or Individual Investing ?

Question

Hello guys... fellow Investors, im looking for your opinions, comments and experience. Im 17 years old and yet to invest in real estate. It's crossed my mind a few times... When i start, my credit will be crap so it'll be hard to get a loan for a house, if i want that quick start i want i'll need a partner. However i believe this goes further than that, im conscious that every good business should have a diverse/balanced base. So i wonder should i base my real estate investing in, partnerships mainly(putting 50:50 in properties & other methods... Includes obviously dividing the profit between the partners) or independent investments mainly (build my credit and try to make it so most of my properties are mine and mine only)? I've been recently overloaded with youtube content and internet info about partnerships, but at the end of the day do the benefits of a partnership outweigh independent investing?

For those of you who also watch real state investing content, im sort of asking if i should go Grant Cardone, or Graham Stephan style?

You are welcome to interpret this post as you decide and every piece of advise, and criticism I'll take into account. Your questions are welcome. Thanks

For those of you who also watch real state investing content, im sort of asking if i should go Grant Cardone, or Graham Stephan style?

You are welcome to interpret this post as you decide and every piece of advise, and criticism I'll take into account. Your questions are welcome. Thanks

Derek Diamond · Answer

Hey @Leandro Abreu Castro! Welcome to the B/P community! You are in the right place to learn.  You said a lot and I will try to unpack it all but remember, like you said, these are my opinions.

You are 17 so you have a year before you can partner or sign any contract. No on will sell a place or partner with a minor because that makes the contract unenforceable on their end. So take this time to educate yourself.  You are staring out WAY earlier than most do and if you stick with real estate you will be financially free decades before many of your friends.

Most lenders(i.e. banks) want to see that you have a good paying job and you have been there for at least 2 years being 17 I assume that this does not apply to you so partnering is not a bad way to go.  Once you are 18 and you find a "good" deal people will want to partner with you.  If you can't find a partner that probably means you don't have a great deal.  Look up "bird dogging" "driving for dollars" "wholesaling", these can all be good ways to get started with little or no money.

Find an area of real estate that you find passion in and learn everything you can.  Even if you spend 5 years just learning you will be in your early 20's, still externally young, and you will know more than most!

A counter point about diversification.  Warren Buffett once said "diversification is protection against ignorance. It makes little sense if you know what you are doing."  Find out an area you like and become the expert of that area. Then you can charge more than anyone else.  THAT is how you become rich.

Grant Cardone's book 10X is not bad.  It has some really great board level ideas.  But if you follow him on instagram and youtube he is selling a lifestyle.  He wants you to see him as "cool" and buy his courses.  Do a deep dive on this site and you will learn sooo much more.

This is getting long so I will end it here but if you have any specific questions feel free to DM me and I will try to help.  Good Luck! you will do great!