How Can I Get Partners For My Real Estate Deals?
The chance to partner on Real Estate deals is one of the most valuable intangible assets one can have in their Real Estate Career. Easily accessible equity is by far the greatest benefits of a strong personal brand. What makes a good list of potential partners so valuable is that partnering on deals diversifies your risk. For instance, if you’re planning to do 2 deals this year by yourself, to make a decent income, you’d have to do two fairly risky deals. Like anything overly profitable there’s a chance for disaster, so those deals may pay off greatly or they may cost you greatly. If you work with a partner you can now do 4 deals and still do those 2 riskier deals with the potential for great return, but you could also buy 2 cash flowing investment properties at the same time. This way, if those investments don’t go the way you want them to you’re left with less downside.
This post will review some easier than expected ways to find partners and make you a valuable partner in any deal structure. If you’ve already got Real Estate investments check out this article here!
What do I need to do to make myself a desirable partner?
Sounds like you’re about to learn some dating advice right? A partner needs to be trustful, have a good track record & bring something unique to the table. Trustfulness is simply just related to how you treat people you work with currently. The best rule of thumb to keep yourself in the good book is simply DWYSYWD – Do What You Say You Will Do. If you let someone know you’ll get back to them by tomorrow, actually get back to them! Don’t make promises you can’t follow through on and people will see you as a stand-up, trustful partner. It also adds a level of professionalism to your personal brand.
What do I mean by ‘bring something unique to the table’? Here are a few normal specialties in Real Estate: Professional Contractor, inspector or Handy man. Financier; can you write conditional offers or make all cash purchases happen? Accounting Guru; do you know strategic accounting methods to save money on investment properties? Real Estate Associate with access to MLS. Deal generator; are you able to find properties before they’re on MLS & get them under contract? Or Lawyer / contract specialist. As you can see there are many ways you can something unique and valuable to the table. The important part is to find someone else with a differing but valuable skill set to compliment your own.
Where Should I Look for Partners?
If you’ve got a valuable skill set and a desire to start growing your investment portfolio and personal brand, the best 2 places I’ve found to find partners are at networking events and through Kijiji. Networking events are great for finding capital just simply start chatting with people & eventually you’ll find someone whose skill set compliments your skill set which will make that good deal all the more profitable! Do not just take someone on for the money they’ll provide. Kijiji is basically the same as networking, post an ad saying you’re ‘looking for an investment partner’ and see what happens. You may find someone really great, as long as you do your homework on the person before hand! If it’s a considerable deal, I’d recommend following the same background check process as if it’s a new renter coming into one of your rental properties.
Partners are important to reduce risk and help you complete more deals, they’re also important because their knowledge about different sections of the real estate game is even more profitable than their investment capital! Looking for more advice? Get in touch with HomeBuyersYEG, we’re happy to answer any questions!