Newbie Advice..

[Michael Baradell]

Hello BP world!! I would just like to officially introduce myself and post my first question! I am a Licensed Realtor in Louisiana. I service all of St. Tammany parish but I mainly concentrate in the Covington/ Mandeville markets. I feel I have come to know those markets pretty well and I feel they would be a great starting point for my real estate investing career as well. My desire to enter the real estate investing world has been one I've had for many years. Which is a big reason why I became a realtor in the first place. With that being said, here's a brief description of my plan. My plan is to be a buy and hold guy with the hopes of acquiring 5 homes in the next 5 years. I am not apposed to flipping, but for the most part my goal is to shoot for a solid monthly cash flow with with appreciation and building equity as a bonus. The issue I am having at this time is to whether partner up with people I trust, or to go at it on my own. I am going to start small regardless, but having a partner would obviously lessen any risks involved. Any advice on getting started would be greatly appreciated. Also, how would you structure a deal with a partner. For example, I will have the home financed in my name but he may provide the cash for down payment and rehab costs. If this is a hold property, how should this deal be structured. Thanks and I look forward to any and all comments.

[J Scott]

Purely my opinion, but my take on partners is that you shouldn't have them until you're comfortable enough not to need them. Having a partner can be a great resource when things go well, but when they don't, have a partner who is more experienced and knowledgeable than you are will put you at a serious disadvantage. And while a partner can help you learn more quickly, what will more likely happen is you'll use him as a crutch to avoid having to learn certain things.

Instead, I suggest you invest without partners at first, brining in resources and team members on a consulting/contractor basis as needed. Once you feel you have a good grasp of the business, THEN I recommend finding partners who can help you grow.

Personally, I didn't have a single partner for the first 5 years I was in this business. Now, 80% of my deals are done with partners, as I've figured out how to make more money with them than without them. I couldn't have done that the first several years...

Again, just my opinion...