Best way to find a real estate investor/partner?

8 Replies

So i have been doing real estate for the last 4-5 years, however, now i want to get away from being the agent. And get more into the investment side. I got a few good properties that i am looking to find a investor/partner for?! Any direction as to where a good place to look for a partner or investor?! Thank you.

Why do you even want a partner?  You know the saying: "The only ship that won't sail is a partnership".  Save your cash and start investing when you have enough of your own money, in conjunction with loans, to do whatever sort of deal you're trying to do.

@Bogart Parra The best way to find a partner is to always be networking by going to as many real estate meetups as possible. Don't just stick with your own town either. Go outside of your comfort zone to network and you will eventually find someone. Chances are you have someone already in your own circle of influence that could work with you. There is an Ultimate Partnering event going on in Boston, MA in September put on by David Lindahl's group that I would recommend as well.

@Hadar Orkibi I totally agree that just being involved with BP and joining local meetups will help you connect with more potential partners.

@Jon Holdman This is definitely an option and I do agree that true partnership rarely ever work out. However, in the multifamily space, especially larger syndications, it is vital to partner with people in the right way to help you get to your goals faster. I always recommend someone find a partner that can balance there weaknesses.

@Dan Handford thank you sir. That is one avenue i have been pursuing as far as local meet ups and stuff but will have to start traveling farther out, like you said outside of my comfort zone. Quick question - for all of you though - what would be the best way to go about finding a partner? Especially if i don’t have the greatest amount of money. I have a little bit but nothing to make a huge dent or anything so what would be the work around that? More sweat equity?

The term "partner" covers a lot of possibilities.  Explain what you are trying to do.

You're an agent and you say you have "a few good properties". Are you looking for a buyer? (Any offers to sell properties or solicitations for partners have to go in the Marketplace, which is what @Hadar Orkibi is referring to.)

Are you trying to do buy and hold but don't have the down payment or credit? In that case, you need to identify what it is you bring to the table to offer a partner. If its simply that you've found a property that may merit a finders fee or commission, by probably not an equity stake in the property. If you want someone to kick in half the down payment and have their name on the loan with you, and you split all the work 50/50, that's probably good for a 50/50 split on profits. Or, for a larger property, where you have several investors and split profits based on capital contributions, you might also be able to take a management fee in addition to your share based on capital contributed.

Or are you trying to do fix and flips and need funding?  A "money partner" would contribute all the cash, you would do all the work (for no payment), and then you split the profits 50/50.

If you're looking for money in one form or another keep in mind there are ways to avoid a partner in at least some cases. If you're fix and flipping hard money lenders, despite their high rates, will likely be cheaper than a money partner. You will need some of your own cash. Its really tough to fix and flip with no cash of your own. If you're doing buy and hold, consider BRRR strategies where you buy a junker with hard money, fix it, rent it, then refi into a long term loan to get back some or all of the cash you've invested. Again, still need your own cash. Or do a house hack and buy a small multi and live in one unit. If you're going to be a landlord, though, having cash in the bank is essential. I had a tenant text Monday night that there was no hot water. On Tuesday I'm sending a grand to my plumber for a new water heater. That stuff happens.

As far as finding people with money, talk to everyone you know and everyone you meet about what you're doing.  Most won't be interested.  A few will.  A few of those will have money.  A few of those will be willing to invest in you.  

@Bogart Parra You will find that partner by networking at meetups and other MF events. You can't expect to find someone you've never met to partner with you by finding them on BP. You will need to find someone to work with you that you know, like, and trust. Anybody with any money to help you with networth/liquidity will also want to know, like, and trust you as well before moving forward. So get out and start building relationships.