Finding a partner

[Jacob Ross]

I’m looking to invest in a property with a partner to split the costs. What is the best way to find a trustworthy partner for this real estate investment?

[Randall Alan]

Quote from @Jacob Ross:

I’m looking to invest in a property with a partner to split the costs. What is the best way to find a trustworthy partner for this real estate investment?

@Jacob Ross

Two answers for you- more times than not - equal partnerships don’t work out nearly as well as going it alone.  When each of you have equal “power”, disputes can be frustrating.  Inevitably you will have differences of opinions on things.  If you are married to your partner (spouse) it’s a little different, but business partnerships can be more challenging - especially when things aren’t going well.  

Take just deciding on how far you rehab a house…”Do we really need granite counter tops in the rental?” can be a question that can have very opposing opinions depending on the mindset of two investors.. and there are thousands of decisions in flips like that.  One person may take the “it adds perceived value”approach, while the other is cost conscious.  Figuring out his to amicably solve issues can be a challenge if not addressed in advance.   

It’s not that it can’t work out, but first you need someone you can trust… I’ve seen many a person scammed by someone they partnered with.  My vote would be for family or close friends who you know and respect from earlier than your current venture.  

But my second answer is that if you are able to “go it alone” from a directional control perspective you will be much happier, and can operate lean where there is no counter arguments to be had with a partner.  Plus all the profits are your own.  You will come out ahead more times than not in my opinion.  
if it is just the financial side holding you back - let your bank be your partner… or see if you can borrow the money from a family member who knows and trusts you -  without actually partnering with them on the control of the deal itself (pay them interest - or even bring in on the lien to secure their position the first time) - but let them be the finances and you control the project. 

My 2 cents.

Randy