How do you find partners for real estate investing?

Question

Hello all, I have done 4 flips in my life time but lived in all of them. I just moved to Lake Geneva (a tourist town) from Chicago. I need help finding a partner. I don’t know if I should do a flip or purchase a rental property. Any advice is greatly appreciated. Thanks!

Jack Medford · Answer

@Katy Jansen I agree with @Chase Binnie, especially if you are working with the numbers you mentioned above. If you find a property between $40k-60k and has an ARV of $140k-150k then you will have no problem finding a partner to bring the additional funding you need. (Assuming the rehab is within reason.)

The big hurdle will be actually finding this property. Milwaukee has a lot of inventory, but it is fairly competitive. Get in touch with @Rebecca Knox so you can get added to the Brew City Facebook group. The moment you've got a deal you can float it there and you'll probably have a couple partners fighting to get a piece.

Chase Binnie · Answer

@Katy Jansen can you give an example of a project & funding you’d need?

For example, you find a property for 100k that needs 25k on rehab, with an ARV of 175k. Do you need a loan for the purchase or the rehab or both?

Do you flip it? Do you go for the BRRR?

I think you’ll find the funding as soon as you get specific & have a tangible opportunity for investors to look at.

Rebecca Knox · Answer

@Katy Jansen prior to real estate, I used to work for a factory based out of Woodstock, IL. Many people were moving from IL to Lake Geneva. That's a nice area. Before working with others, be sure to get hard proof that they are actually knowledgeable or have expertise in the area you are looking for a partner in. I am always stressing the importance of verification because I hear war stories daily whether it be questionable contractors, deals, borrowers or investors/partners and many could have been mitigated if more due diligence, setting forth clear expectations and/or reference checking had been done.

Nicole Heasley Beitenman · Answer

Go to your local REIA or REI meetup and start networking!

Marcus Auerbach · Answer

@Katy Jansen - how to partner is real estate? It's like the old joke: How do Porcupines mate? Very careful!

Family money is usually your best choice, followed by friends and other people who know and trust you. Be very careful with people you meet at events.

Renting is a lot easier and much more forgiving than flipping; flipping is actually more like a job you create for your self, you are not really investing (there is no cash flow). Maybe you should consider a BRRR?

Jack is right on - I think it's been at least 7 or 8 years since I saw a property for 40k that had 140k ARV. We are super tight on inventory, we have only a third of the supply we should normally have. Look at it from the perspective of a Seller - if you would not list it, at least you would call more than one "I buy houses" guys, right?

Rae'Chel Harris · Answer

My name is Rae'Chel Harris & I am an investor in Milwaukee. I have a couple of properties that I am selling now on N. 28th ( duplex) & N. 33rd ( SFR). If you're interested in more information, contact my realtor Brian Altman.

Katy Jansen · Answer

@Chase Binnie My partner and I are looking for investors. We have experience. We just need a little more funding to make it work. I live in Lake Geneva but looking in Milwaukee for investment properties.

Brock Mogensen · Answer

The best place to find a partner is through real estate events. There are many in the Milwaukee area. We host one called the "Wisconsin Apartment Investors Meetup". I suggest first defining which path you are looking to go down in real estate and then connecting with someone experienced in that path and provide value.

Katy Jansen · Answer

@Chase Binnie we are looking for distressed properties with a purchase price of 40-60k.

We have 40k cash but need funding to do the rehab. Our first project is going to be a flip and then go from there. My partner is a GC and he is going to do the work. The ARV would be 140-150.

Chase Binnie · Answer

@Katy Jansen What are you looking for the partner to bring to the table?

How do you find partners for real estate investing?

How do you find partners for real estate investing?

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