Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
In areas of the country where prices have gone UP, and the only properties left are scraps, would you consider partnering with other like minded investors to purchase higher quality properties? Why or Why not?
There are two types of partners: Money Partners and Business Partners. Both are important.
When I first took on money partners, my business went from flipping 2-3 houses per year to 15-20 houses per year.
A number of years later I got a business partner and more money partners. This grew my business from 15-20 houses per year to over 100 per year plus a sizable portfolio of rental homes.
More money partners has also allowed me to buy hundreds of apartments that I couldn't have bought without them.
If the whole of the partnership is greater than the sum of its parts, it's a no brainer. I'm always looking to develop these relationships. If you want to stay small, do it on your own. If you want to grow, partners are necessary.
Karen Margrave Thanks for the info.
Cal State Fullerton already has some new apartments that are already renting called "College Town". It's an overall site plan: http://www.fullerton.edu/community/CollegeTown.html
The hotel is family owned. It's franchised, but we own the real estate.
My partnerships are usually set up as an LLC. However my biggest deal is a joint venture on a handshake. Oddly this is with a few attorneys. You'd think they would want everything in writing. (which is frankly how I would prefer it.)
I haven't done one this way yet, however one option we will probably do shortly, is to purchase a property as tenants in Common.