best way to find a partner?

Question

looking to partner up with someone to invest in a house hack property ( or out of state non house hack) multi unit. Whats the most effective way to go about this? should i even look to partner up?

I'm a novice in real estate but looking to put some money to work and going for my real estate agent licence in a few weeks.

any and all advice welcome. message or add me, looking to connect and learn!

Account Closed · Answer

To start, you can find some local real estate investor meetups to attend.  This will allow you to start networking and meeting people with similar interests and goals as you.  I go to one in Providence, RI, and most who attend this one are either trying to get started or have 1-3 rental doors, so most are in the beginner stages.  I have been going for about nine months, and in that time, there was some talk among 4 of us about joining together to invest in a multi family, but never fully got off the ground.  So the potential is there to make partnerships, but it's going to take time, you can't walk in day one and expect someone to become your partner, you need to create a rapport and relationship with people first.

Anthony Thompson · Answer

+++ what Account Closed said. Definitely go to your local group, and if there isn't one, consider creating one. But at this stage of the market there probably is one near you.

As he said, you need to take it slow, and expect that it will take time. A partnership is like a marriage, easy to get into, not necessarily so easy to get out of.

So you want to take your time and make sure any potential partner is a good fit for you, to check them out in multiple ways (e.g. if your state has a free criminal check, check land records for judgments against them, ask people who may have done business with them - including private lenders - how they were, etc.).

And you want to start slowly, with something small, so that if it goes badly you limit your loss - but still getting experience with the person. You'll probably learn almost as much about someone in a deal if you have $10,000 on the line vs. if you have $100,000 on the line. Chances are they will behave roughly the same. So you'll probably learn about as much, but at much less cost/risk. So start small and then build up from there.

It's also highly recommended that you talk to your own personal attorney before committing to anything with a partner, because there are different ways of structuring things, cost/risk trade-offs that you should be aware of. For example, my understanding is that if there is no entity, then you are in a general partnership by default, which means you'd have full liability for your partner's actions.

On the other end is a joint LLC, which is complicated and costs money but may be the best for a long term partnership. In the middle, and something to consider for a first deal, is a "joint venture", where you and the other person both have entities but don't necessarily form a joint entity together. Like I said, something to consult with a good attorney about :)

Brian, on your situation, I'd recommend doing one of two things. Either, 1) pick the one of the 3 other people you mentioned, that you most like and seem to get along with, and go to him/her with a specific deal to try to move forward with just that person; or 2) set up a monthly "mastermind group" with all 4 of you (and ideally find maybe 1-2 more people to round it out to 5 or 6), and then meet monthly to help each other move forward, hold each other accountable, etc. I can help if you need more specifics on doing that here in RI.

Alexander Felice · Answer

Partners are like marriages, I know this is cliche but it's the fact.

You might get lucky and find a great partner quick and easy, but for most people it's a process. You want to find someone you know well, has aligned goals, and can get along with.

Play the long game here, I know it's exciting to go fast, but like a marriage you don't want to elope after the first night.

Spend time networking locally and digitally until you find someone who wants to do the same projects as you and has complimentary strengths/weaknesses.

Jaron Walling · Answer

If I partner with someone the relationship would need to build organically. I'm not offering a sales pitch to get someones money. I completed or flip, sold a property, or meet someone with common interests outside of real estate. Investing is my side job. I have friends that love real estate but none of them are "investors". They just like pretty houses in expensive locations. It's important to bring knowledge and connects to a deal. I'm still learning this business and for those reasons I haven't partnered on anything.

Ian Walsh · Answer

Match.com

Igor T. · Answer

Move to cheap market. In this way you will not need partners. In Cleveland you can get livable house from 5K with some effort.

Brandon Dorosario · Answer

Great reply's! really appreciate the advice and will start putting it to work.

wish you all the best in 2020

Brandon Dorosario · Answer

@Igor T. Thats definitely an idea im open to. ill start looking at more states. Actually heading to Goergia in a few days to look at some houses (more so to see what the market is like) so we'll see

Thanks for the response, much appreciated

best way to find a partner?

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