How did you find your business partner?

Question

Hello,

I want to start buying and flipping houses in Los Angeles. I currently am in school pursuing a degree in business. I have been doing extensive research on house flipping, but I'm a college student no credit or money. Although I feel that this is my calling, where do I start? where do I get the funds knowing I have no money saved? I was thinking of finding a partner to fund the projects, while I do most of all the work but where do I find such a partner?  If you are in the house flipping business with a partner that finds everything, where did you find your partner?

Robert Leonard · Answer

@Kay M luck happens when preparation meets opportunity! That's a borrowed quote.  One without the other is wishful thinking.

If you recognize the potential for what can be done in REI, you are on the right track.  Keep learning and position yourself to be ready when an opportunity happens.  You mentioned "no credit or money" and those are two things that you can do a lot to change.  Be smart about protecting your credit because in real estate, you can do more to create advantages with credit than in just about any other area.  Live within your means and avoid borrowing more than you absolutely have to, to pay for your education.

Your education can be your ticket to your no money problem.  When you get a job, make sure you keep your standard of living at a level that will allow you to have funds for investing.  Your job will give you the cash flow you need to get bank financing.  Despite all of the creative ways to finance deals, bank financing is one of the lowest cost ways to do it.  That goes back to my first point about your credit, your credit is real money that when paired with a steady paycheck will get the ball rolling for you in REI!

I am speaking from experience.  I discovered REI when I was flat broke and unemployed.  Long story short, I bought my first home on my 1 year anniversary from getting a full time job (the first day I was qualified by the old rules of financing).  Some would say I was lucky, but it wouldn't have happened if I hadn't prepared for it.

I know you asked about finding a partner, but while it's not impossible, I think it's highly unlikely that an investor with capital to invest will bank on a college student with no experience on such a venture.  It will still be a stretch to try to pull it off, but if you are determined to try to start now, your best bet is close family or friends.

Jon Deavers · Answer

Hi Kay and welcome to the forums. I would start by downloading the back catalog of BiggerPockets' podcasts. There are tons of interviews with real-life success stories from the forums here on topics that will critical in getting started. Everything from deep dives into the economics of flipping to creative financing and getting started with none of your own money.

Also, dig around this forum. There are tons of knowledgeable investors on BP that have done it all and many from a starting position just like yours.

Best of luck in finding your own path. You've made a great start by joining the BP community.

John Malahay · Answer

@Kay M

Hi Kay,

Are you in CSULB being that you in Long Beach.  Any way, there are great learning FIBI investor clubs around the area.  The FIBIs ran by Matt Owens are good places to learn & network with.  It's just the matter of associating with the people you want to get involved with business-wise & sometimes it overflows to personal lives.  You can study up on all the different opportunities in real estate, but until you get out there & assume your position & claim your piece of the pie, it's just knowledge, right?  If your schedule permits, check out the BP meetups that happen from time to time.  God bless you on your investing endeavors.

-john

Andrew Syrios · Answer

The two most common options are 1) family and 2) someone you've networked with that trusts you. You could find them at REIA or business meetings or any networking event or just calling around. But you need to impress them and the best way to that is to have a record of success. To that end, wholesaling is a good way to start and build that record. It is also critical to have a well made business plan to show them.

Account Closed · Answer

With no credit and no money start out by wholesaling.

Joe Gore

Bill Jones · Answer

Hi Kay I'm always looking for co investors for buy and hold out of state properties very minimal investment

Bill

Kay M · Answer

Thanks a lot  I will do that

How did you find your business partner?

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