How to find a partner when all you can bring is the capital

Question

What is the best way to find an experienced parter to work with? We are currently LP in a large syndication but want to explore partnering with people on smaller deals so we can actual learn more. The only thing we can bring to the table is capital. We are currently stationed in South Korea with the Army and wont be back for a minute so there really isnt much value other then saved capital. What is the best way to start looking for partners? We are debating doing another syndication and locking the money up for 12-18 months, but also want to learn more and be able to jump into small multifamily once we get back.

Matthew Irish-Jones · Answer

@Jacob Morris you do not need a partner.  You need an investor friendly agent and a property manager.

Find the right team and they will find you cash flow investments and you will be a passive investor.

A professional agent and really good PM are going to work better than a partner because you can fire them if they don’t do a good job.

Wendy Schultz · Answer

That's a dream partnership for me. You bring the capital and I bring the knowledge. All of our funds are tied up in assets currently so capital has been the most difficult part for me.

Elijah Vo · Answer

@Lucas Miller, yes South Korea sounds very familiar since I was stationed there years ago, lol!

@Jacob Morris, if I have it right, it looks like you're into several things (loans, rental properties, LP on syndications), but you want to focus on being a syndicator/sponsor, correct?  If so, I know how you feel being geographically separated but wanting to get moving...I was the same way in Korea in Kuwait ; )

Anyways, IMO you can look at this two ways...you can go small or big, but you have to ask yourself if you want a big cut of a small deal or a small cut of a big deal. You may not realize it yet, but you'll actually put in the same amount of work syndicating both kinds of deals. But the choice will be a personal preference.

I personally think partnering is critical in this industry, if you're looking to grow/scale.  Very, very difficult to scale otherwise.  Just make sure you find a trustworthy partner who complements your skillset.

Since you're looking to syndicate, you can research the different investment groups and see which one you fit into the best.  Investing groups are good because you can tap into their network, experience, etc. and partner (or not) with people you know and trust.  Personally, I chose Think Multifamily.  They are ran by Mark and @Tamiel Kenney out of Dallas, TX and I have had lots success with them.  Don't get me wrong, there are other groups out there, but these are who I recommend.

If you want, you can ping me to discuss my experience more.

Until then, good luck my friend!

Theo Hicks · Answer

There are many forum posts that list out reputable sponsors with which you can invest. Your best bet is to go to their website and try to set up a 1-on-1 call to learn more about them and their business.

If you're goal is to learn as a passive investor, it is definitely possible, but you won't have much day-to-day involvement in the deal, as I am sure you are well aware of since you're currently an investor in a deal. You can, however, ask questions along the way, as long as you are sending a bunch of questions every day.

Matthew Irish-Jones · Answer

@David Pere the best kind of partners are ones you can fire if they don't do a good job LOL.

Lee Ripma · Answer

@Jacob Morris

Do you have a target market upon your return? Or maybe a few target markets? If you network with folks in those markets you might be able to find the right person to partner with. You bring the capital and learn, they oversee the projects as the boots on the ground.

Account Closed · Answer

@Jacob Morris

Smart man!

I'm a Vet too appreciate your service!

A few tips to help you get started -

*Bringing Capital to the table is just as important as finding the deal

*Know thy partners - there are people out there looking for people that have money to invest or have a network of people looking for investments

*Learn the business - Being part of a syndicating team is a great way to learn.  If you have a network of investors they can let in on the GP side and through the issuer exemption you can raise equity for your deals.  This is a great way to learn and you'll also be doing other jobs for the team in addition to investor relations.

*Be patient

This allows you to add value to an existing group and it's also a great way to learn as you go!

I hope this was helpful.

Don't hesitate to reach out-

Dino

Jacob Morris · Answer

Thank you for all the replies and different opinions. What I find most interesting is all the different paths that are mentioned and different ways to approach this. Just to update we are planning to start  by partnering with a flipper to get more exerience and knowledge of rehabs and looking at RE from that angle. We plan to continue to re invest the principle from those deals over and over  to only lock up a small amount of money and keep open to investing options back in the states that might happen while we are over here in korea enjoying what the army throws at us next.

Brock Mogensen · Answer

Find a syndication that is willing to teach you the process.  Most GP's are more than willing to walk their LP's through the process, if they desire to.  That is what we are doing for our LP's.

John Fortes · Answer

Thank you for your service @Jacob Morris!

Since you are already invested as a LP have you tried reaching out to the sponsor and asking questions?

If your considering another investment, you should line it up with when you will be more local if you are going to invest in the opportunity. That way when you are back and you have your capital back, you can start to work on the opportunities you seek.

How to find a partner when all you can bring is the capital

Most Popular Reply