How to Use Partnerships to Move Your Real Estate Business Ahead Faster & Further


In wholesaling, there are many components and moving parts, such as marketing, acquisitions, dispositions, transaction coordinating, networking, property inspections, and more. Handling all of these jobs is difficult for any one person. This is where strategic partnerships come into play.

This was difficult for me because growing up, I had to know a little about everything in order to be successful. Growing up on a farm, we didn’t hire out — we figured it out. This philosophy was challenging to me, and later in life, I realized the many flaws with this concept. I’ve learned the importance of focusing my attention on my areas of strength, just as we all should. This is not to say we must ignore our weaknesses, but if we can find someone who can do the job better, then we should give that person the latitude to excel in that area. Trust me, it will benefit you both.

Download Your FREE copy of ‘How to Rent Your House!’

Renting your house is a great way to enter the world of real estate investing, but most first-timers (understandably) have a lot of questions. Fortunately, the experts at BiggerPockets have put together a complimentary guide on ‘How to Rent Your House’. All the skills, tools, and confidence you need to successfully rent your house are just a mouse-click away.

Click Here For Your Free Guide to Renting Your House

A Partnership Can Move Your Business Faster & Further

Effectively using the power of a partnership will push you along your journey a lot faster, and you can go a lot further.

This may be difficult in the beginning because of your limited knowledge of wholesaling, but you have to use everything to your advantage. You have to use what you do know, along with what you don’t know. If you ask any professional, they will stress to you the importance of partnerships and mentorships.

One of the most powerful tools to help you along your journey to becoming a successful wholesaler is self awareness. By conducting a self assessment, you will gain a clear picture of what you have and what is needed. Once this is completed, you can use your findings to attract that person who has the knowledge base you seek. I am a firm believer that everything you need is locked in someone else, and you have to ask the right questions to get what you need. If your counterpart is wise, they will seek the same from you. Don’t get me wrong — it is not easy finding this person, but it is not impossible. The laws of attraction will become evident once you know what you need — then you can attract it to you.

Related: 4 Key Traits That Define a Good Employee or Business Partner

Being Tenacious in Getting What You Need

Again, evaluate what you’re good at: If you’re good at talking with sellers, continue to develop that skill and enhance your public speaking and negotiating. If you’re great at marketing, work on this area and let someone else speak with sellers. Or you are very analytical, then you can do all the data mining to provide information for the marketer. It will all come together, but you need to know what parts are needed to make things happen.

I still work to focus on my strengths and outsource my weaknesses. I utilize the skills of virtual assistants to help me develop areas I have limited knowledge in. If you know the areas you are limited in, you can then hire VAs who are willing to do what what you’re not good at or things you just don’t like to do. For me, I am not particularly fond of working with a lot of data, so I recently hired a VA to do all the skip tracing for me, a job that if I needed to do, I could have done, but I know my time is best utilized elsewhere.

Strategic partnerships are win/wins for all parties if set up correctly. When acquiring a true partner, a written agreement should be in place. This could be in the form of a partnership LLC or some memorandum of agreement. Without this, your success could quickly become a huge failure. There is an old saying that you never need an written agreement until you need a written agreement. Please don’t find yourself like Prince’s heirs — without a written agreement (for those who don’t know, apparently Prince died intestate, but that may be hearsay).

If you would like to know more about the power of strong partnerships, I’d recommend the book Power of 2 by Rodd Wagner and Gale Muller. They expose some profound points about partnerships.

Don’t Let What You Don’t Have Stop You

I was inspired to write this article because the fear of the unknown limits many newbies from jumping into the world of wholesaling. I know this because I was a subject matter expert on letting the fear of the unknown slow me down. Once I shed the fear of embarrassment, there was nothing I was afraid to ask and no one I was afraid to be foolish in front of. I had to acknowledge this, and by doing a self assessment, I knew what I needed — and fear could not stop me from going to get what I needed.

Related: 3 Ways to Partner With an Experienced Investor For Your First Multifamily Deal

It is very important to focus on your needs — what is needed for you to get your first deal, what is needed for you to get started marketing, what is needed for you to feel comfortable talking with sellers. Evaluate your needs one at a time, and you will be able to source those needs and become successful.

Are you aware of what you need but don’t know how to ask or where to find it? Well, Bigger Pockets is a great resource — ask questions in the Forums or leave a comment below, and maybe I can steer you in the right direction.

What do YOU need in order for your business to thrive and grow?

Let me know with a comment!

About Author

Marcus Maloney

Marcus Maloney G+ is the Executive Officer of Equity Realty & Investments as well as 3rd Generation Management & Holding LLC, both are family owned and operated real estate investment firms. The firms' goal is to provide affordable solutions in real estate while providing exceptional opportunities for community redevelopment for the residents of Phoenix, Arizona and Chicago, Illinois. You can follow Marcus on Twitter


  1. Jeffrey Hare

    Yes, “Get it in Writing.” The court dockets is overflowing with cases involving disputes between partners who started out with a dream and ended up with a nightmare. Unwinding these ventures, when the parties no longer agree as to the value of their partner’s contribution(s), takes time and money, and whatever equity or value may have been built up is quickly squandered while the dispute grinds its way through the judicial process. It’s basically a contested divorce proceeding in every way. Marcus is absolutely right – do an honest assessment of yourself and your partner, put it into writing, and I would just add to include an escape clause – a provision for an orderly and fair way to shut down the process if the parties cannot agree at any time in the future.

    • Marcus Maloney


      Great imput your knowledge is always welcomed. When going indepth with your partnership it is mandatory all agreements be in writing. The escape clause is great, what we do if we are jving on a buy and hold we agree that if the property appreciates to a certain point we have an agreement to sell. Thanks again for your imput.

      “Enjoying the Journey”

  2. Curt Smith

    Agreed agreed! This topic could fill 2 books if one where to cover screening investors for accredited, sophisticated, none-of-the-above. Structure; JV agreement with or without a project specific LLC and finally an SEC reg D filing using an SEC attorney often creating a syndication the best strategy for larger deals, say over $1M and the investors (or lenders) are passive non-real estate experts.

    There’s other reasons to do serial JVs besides OPM. If the in-experienced can put together a deal with a more experienced partner I feel it’s well worth the work and time cost to “learn”. But if it’s just for OPM then I have other thoughts.

    Beware borrowing from or wanting to Joint Venture with folks who are not expert in real estate deals and risks. They can claim ignorance and you mis led them on the risks. Which why a JV agreement must have at the least this sentence:

    “real estate investing is risky, you can loose some or all of your investment”. You need to have them initial this sentence!

    You do not want to take funds from someone who is not a real estate investor is the simple and safest tip.

    The best person to do a JV with is one who meets the criteria of “accredited”, assets exceeding $1M excluding primary residence AND has income of >$250k individual or $300k as a couple (if memory serves).

    The 2nd best is “sophisticated” and I forget those criteria.

    The worst person to JV / take funds from is someone does not know real estate, you are taking a majority of their savings and are risk adversed. Some times it’s wise to say no even if they offer to be a partner.

    I’ve done a JV with a “peer” on a well written JV contract that has the needed disclosure pages (many pages). I’ve also done a project specific LLC and the JV agreement was written into the operating agreement. In both cases an Attorney was involved to write the key document.

    Some states, like GA, have exemptions to “you are selling a security” if you keep your deal simple. Some states OR, OH, WA and many more do not give you an exemption.

    Some states exempt from being a security:

    – one investor / lender
    – The investor is someone you knew prior to the deal
    – no advertising (re the above)
    – investor is in a 1st lien, note and possibly a JV agreement

    It’s a grey area and would take consulting an Attorney how one sets up business agreements and structure to do JVs in the restrictive states like OH, OR, WA and others.

    No state can get in the way of “peers” doing business. The problems arise from business relationships between un-equals. IE Grannie lending you 90% of her life savings for your flip. This is a security except in states with an exemption, and even then it is NOT a good idea to take but a fraction of the partners / lenders assets (10% or less) or get involved with someone who is risk adversed.

    I’m hoping other BPers who have done JVs will chime in giving their experiences pro and con.

    The number one issue for our JVs has been: we did all the work and got less than 1/2 the benefit. One might think that 1/2 was better than nothing and for new folks that might seem like the case. But the more experienced you get the more you value your time and effort. Right now I’ll JV on very big deals and on the small deal end: I’ll enjoy time at home vs at a project if I can’t fund a deal 100% myself.

  3. carlos cortez

    Hello Everyone i just signed up last night and so far i have learned so much from tjis group. Im An experinced Realtor here in sunny san diego, i have flipped about 14 deals succesfully, Im thinking of forming a group of investors and other people wanting to know more about this lucrative business,we could colaborate and help each other. I belong to brokerage where we have property management who is up for it? please call me 6195722940 carlos cortez

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here