How does everyone find partners for deals?

10 Replies

What type of partners are you looking for? Contractors, realtors, $ etc.

One thing I always caution people on who look for money on deals is it is illegal to solicit funds from others in a public forum. People think they can just post a deal and ask people to fund the deal. While only a small percentage of people get caught doing it, it is still illegal. You must have a fund setup like a 506(c) where you can openly solicit and can only accept accredited investors. Not to sound gloom and doom but if the SEC every did a sneak peak at bigger pockets they could reduce our deficit significantly with the number of people who would be fined for this type of activity.

Originally posted by @Stephanie Pieri :

Hello everyone! So as the question states above, How does everyone find partners for their deals? Im finding deals but not the partners and go!

Check and see if there are any REIA (Real Estate Investment Assoc) groups around you and start attending meetings. Another way is to ask family and friends if they have any interest. And, one of my favorites, go out to active fix & flips and talk to the contractors about who's project it is then contact the investor.

Originally posted by @Chris Seveney :

What type of partners are you looking for? Contractors, realtors, $ etc.

One thing I always caution people on who look for money on deals is it is illegal to solicit funds from others in a public forum. People think they can just post a deal and ask people to fund the deal. While only a small percentage of people get caught doing it, it is still illegal. You must have a fund setup like a 506(c) where you can openly solicit and can only accept accredited investors. Not to sound gloom and doom but if the SEC every did a sneak peak at bigger pockets they could reduce our deficit significantly with the number of people who would be fined for this type of activity.

 Just for clarification: You can be non-accredited.

Rule 506 of Regulation D

Rule 506 of Regulation D provides two distinct exemptions from registration for companies when they offer and sell securities. Companies relying on the Rule 506 exemptions can raise an unlimited amount of money.

Under Rule 506(b), a “safe harbor” under Section 4(a)(2) of the Securities Act, a company can be assured it is within the Section 4(a)(2) exemption by satisfying certain requirements, including the following:

  • The company cannot use general solicitation or advertising to market the securities.
  • The company may sell its securities to an unlimited number of "accredited investors" and up to 35 other purchasers.
  •  All non-accredited investors, either alone or with a purchaser representative, must be sophisticated—that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.

https://www.investor.gov/additional-resources/gene...