Approach Investors/Partners Before Purchase Offer or After?

Question

Hey everyone, fresh real estate investor hatchling here.

I'm in my learning phase and just starting to analyze deals. I've never done a deal and I'm jobless right now—I live in south Orange County, CA and I hope to own an out-of-state small multi-family for cash flow before the end of April 2021.

Burning question in my novice mind: once I feel that I have a great deal, should I approach investors/partners before or after getting a property under contract? Obviously, with no cash, I'll be contributing sweat equity and splitting property equity 50/50 or 70/30 to get my first deal paid for and closed. I simply have never been through this process before—any perspective greatly appreciated!

Also—if there are any other investors in the Orange County area that would like to exchange ideas about strategies or just chat about the market, I'm open to connecting over Zoom! Open to learning anything at this point! Send a message if interested.

Jonah Cervantes · Answer

@Joe Homs @Alina Trigub

Thanks for your feedback! I'll keep working on those things.

Joe Homs · Answer

@Jonah Cervantes welcome to BP in the OC.  Glad to see that you are starting this journey young.  I would concentrate on learning all you can about investing in Real Estate locally before you venture out of state.  Orange County is difficult to jump in with both feet, but its a great place to learn from the local talent.

Do you know how to establish the ARV on a property?  How much are rehab expenses locally?  What are closing costs on a deal?  Learning to answer these questions will help you out wherever you invest.  Having the right tools and mentors in place will also go a long way.

Networking is very important.  Before we were all locked in place there were many local meetup groups here in Orange County.  Reach out to them to see if they have something to offer online now.

Good investing...

Alina Trigub · Answer

@Jonah Cervantes

Welcome to BP!

To have investors and/or partners you need to establish and build the relationships, it is a lengthy and slow process (sort of like dating). So start networking with others now. There're many virtual REI  groups  these days. You can find most via BP>Network>Events or via Meetup site.

You should also work on educating yourself and looking for deals at the same time. You're at a great place to learn, so take advantage of this site.

Best!