I just went to my first ever Real Estate investor meeting and it was really a great experience to meet other investors both new and veterans, I was blown away and unfortunately didn't write down all the questions that i wanted to ask! Well, I always hear about investors partnering with other investors, how exactly do investors partner? I know partnering with anyone can be a challenging experience so I'm just curious what type of roles does each investor have in terms of role/time/money/etc,etc and the possible problems that you all have run into. I'm still learning the ins and outs of this (being an accidental investor and having a full time job) but I'm just digesting as much as possible and it's really interesting. After acquiring 4 properties (rentals) I feel lucky that the market was good and realize now I really have to do my homework to be successful. I'm getting to the point that financing is getting a little tighter and lucky that I have a full time job which is helping a ton to finance this business but hate to let opportunities pass by while I'm saving for the next deal!
If someone is just being interested in being a money partner you have an attorney draft a promissory note backed by the property (mortgage document). If they want to be equity partners start a LLC with each of you owning 50% of the company. The LLC should only be dedicated to the property you are partnering on. An attorney can easily do this for you.
Hi @Eddie Werner , thanks for the response, a real estate investor partnering with a money partner is the most common partner scenario? I could see things getting a bit more complicated if we are talking about rentals where maintenance costs complicates matters. I'm running into an issue now that I can't qualify for a loan but do have some money saved but just can't get approval (an old short sale) so that's bringing me into this uncharted territory, I can try to see if it makes sense creative financing from an institution (so far no luck) or do the partnering thing which I have 0 experience or just wait until I'm able to get loans again.
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