Hi BP fam - looking to get into the game with our first small multi family (2-4 units) rental in the Midwest (Toledo OH, Cincinnati OH, Indianapolis IN, etc).
I’ve researched the areas and am currently analyzing properties and talking with realtors daily to get even more understanding.
Would greatly appreciate any experienced investors advices on finding and structuring jv partnerships?
It’s great to identify a market and then find a good investor friendly agent who can connect you to contractors, property managers, and lenders. Without a good deal you can’t buy anything.
Not sure what you mean by joint ventures specifically though
I say focus on one market one methodology build up your connections and then once you are kind of established and have some credentials expand your areas of interest and markets.
If I were you I would pick Indianapolis IN
I think it will be a bit easier than Cincinnati but still need better bigger market than Toledo
Hey @Marc Rice thanks for the reply here. By joint venture I mean I do all analysis and due diligence of an opportunity and bring it to a partner to fund the project.
@Shlomo Koheler thanks for the feedback! My methodology is buy-n-hold a turnkey small multi family.
Can you maybe give some insight on why you’d choose Indianapolis and any preferred agents, contractors, lenders, etc that I could reach out to would be awesome!
@Lance Stokes Also being a long distance investor, I'd say that one of the best things to do is to first establish good local business relationships ....then only do you look for deals in those areas where your relationships can help you.
I feel like I've read too many stories of out of town investors jumping on what they thought was a good deal only to struggle through a tough rehab or even through bad property management. What good is a great deal if you are hundreds of miles away with no trusted support? Instead, if you work the other way around (relationships first then the deals), you put yourself in a position to confidently pursue deals knowing that you already have people on your team who can support your success.
Are you wanting to JV in like the way wholesalers JV ?
If so, willingness likely is plentiful and qualitative value is minimal in most cases, as you filter out crappy wholesalers and move towards better deals / partners.
Are you wanting to JV as in flip / hold?
If so, I’d suggest a lot of zoom / meet calls. I’d message people in your market. I wouldn’t pitch hard on my first message. That’s like asking a girl to marry you as a pick up line. I’d be patient and build the relationships slowly and authentically. Can be as simple as a hello, expressing interest in a message about a market, and seeing if that person has 15-20 minutes on a scheduled call.
I've been that person for a lot of calls and have made friends and types of JV partners from it.
I hope this helps.
@Sunil Kurian great point - having a solid team is key to becoming confident investing out of state. Definitely taking that into account while doing my best to speak with realtors, lenders/banks in the area. thanks for the comment!
@Nate Sanow i am looking to jv as in buy-and-hold properties. thanks for the feedback - taking the relationship building route, rather than just asking up front makes a ton of sense. Being more active here and in a few fb groups I've joined is pretty much my strategy to initiate those relationship. thanks again for response!
@Lance Stokes Congrats on getting started! If you have any questions about the Cincinnati market feel free to reach out! As for JV partnerships, the best way I have found is to build relationships with people who would be a good fit with each others goals. It can be difficult to equate 50/50 value so you would need to find someone who complements your skills and lack there of, or someone who can contribute skills, time, money, or knowledge into the deals. Good luck!
I do primarily creative financing on the buying and selling,
So I don't have yet much of the contacts you are looking for.
And again Indianapolis is a big city with diverse 'hiring powers'
But I feel it's ain't competitive and crazy as Cincinnati.
Hi Lance! I'm from Indianapolis. I started my RE journey here. Now, I have a hundred doors. I would love to share my experiences and chat you more if you're interested.
Definitely open to connecting in Indianapolis
Good Afternoon @Lance Stokes The very first thing I would do is get your core 4 in your pocket! Understanding OOA markets can be tricky. If given an opportunity, I would plan a trip to these areas. Spend a day in each area and drive around to learn the areas, the local traditions etc. Ask questions, talk to multiple people in different areas of real estate and find your niche in these markets.
@Shlomo Koheler yeah creative financing is certainly an aspect I am studying up on more to feel confident talking through that option with the seller - definitely opens up the ability to put less money down to start
@Joseph Cornwell thanks for the response and well wishes! I have not done a ton of research on Cincinnati so I will definitely take you up on the offer and message you separately to talk specifics about that market. thanks again
@Nick Giulioni hey thanks for the response. Always great to speak with someone who has "been there done that"
look out for a direct message from me to set up a time to discuss your experiences going from starting out to now a hundred doors - huge congrats on that by the way!!
@Kerry Noble Jr thanks for the response - ill shoot over a message separately to chat all things Indianapolis
@Mike Mocek thanks for the response here - Im going to hop in the forums to understand core 4 a little better
planning for a trip to the area early 2022!
Make sure you have a good property manager
@Dell J. yes for sure, finding solid pm is a high priority
You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspot cities investors usually consider: