Going solo in the real estate industry can be a scary thought for some. That’s why a large portion of real estate investors decide to partner up with other investors forming what is known as a real estate partnership. Learning where and how to find real estate investors for a profitable partnership can be a rewarding skill for all investors at any level of experience.
In this article, we will show you how to find real estate investors for a partnership. We will also provide some useful tips on how to create a successful real estate partnership. But before that, let’s talk a little about the advantages of partnering up in real estate investing.
Advantages of Investing in Real Estate with a Partner
From splitting the risks to having additional funds, forming a real estate partnership can surely give you access to the best real estate investments. Here are the 4 main advantages of investing in real estate through a partnership.
1- Additional resources. The formula to success in real estate investing is a balance between financial resources and a good background knowledge in real estate. Partnering up with other investors combines these resources together, giving you access to real estate investment opportunities that would not have been possible to invest in on your own.
Related: What You Need to Know About Real Estate Partnerships
2- Divided risk. Like any form of investing, real estate investing is prone to risks. If you invest with partners, you will not have to carry all the risk yourself. Risk is divided among partners according to their shares in the partnership.
3- Expanded network. Having a real estate investment network is one of the pillars of success in real estate investing. By learning how to find real estate investors for a partnership and joining forces with other real estate investors, your real estate network will expand exponentially.
4- Increased accountability. Probably the most valuable advantage of having a real estate partnership is the increased accountability that comes from knowing that other investors are depending on you.
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Related: Real Estate Investment Partnerships: The Pros and Cons of Investing With a Partner
How to Find Real Estate Investors for a Partnership
Knowing how to find real estate investors is your shortcut to finding the best real estate investments. Whether it’s your real estate agent, your colleague, or even your gym buddy, any person you know can be a potential real estate investment partner. Your focus should be on people who fit these basic requirements:
- Know how to manage a real estate investment
- Interested in investing in real estate with a partner
- Have money to invest in a partnership
Here are 4 proven ways of how to find real estate investors for a profitable partnership.
#1 Your real estate network. The first place to look in when looking for real estate partners is your own real estate network. Do you know other real estate investors in your area? Maybe your real estate agent? Give them a call and present your idea. Don’t have a real estate network? No problem. Start attending local events where real estate investors, agents, and appraisers conjugate. Build your own network from scratch and learn how to find real estate investors for a partnership.
#2 Real estate investment clubs. Type in “real estate investment club near me” into Google and look for investment clubs in your area. These clubs can be very helpful to find partners since the attendees are real estate enthusiasts. Get yourself a business card and a website that talks about your real estate portfolio. It doesn’t have to be fancy, but it will surely help you look more professional when you approach potential real estate investment partners.
#3 Social media. Social media has changed how we interact with people. Investment clubs are not your thing? No worries. Facebook and LinkedIn have blown up with real estate investment groups over the last years. The key to how to find real estate investors using social media is being interactive and building relationships there. How? Engage in conversations and comment on other investor’s posts.
#4 Friends and family. Last but not least, your friends and family are your secret card when it comes to real estate investing, and there is a good chance that one them is already in the real estate business. Get the word out, and let the people close to you know that you are looking for real estate partners.
Secret to How to Find Real Estate Investors for a Profitable Partnership
#1 Have common objectives. When learning how to find real estate investors to partner up with, it is important to choose a partner that has a similar mindset towards real estate investing. Decide with your partners what level of return on investment you expect and look for investment properties that match the partners’ criteria. It is no secret that a profitable partnership depends largely on the property you invest in. Use Mashvisor to find the best real estate investments that match yours and your partners’ expectations.
#2 Write everything down. Make sure to sign a partnership agreement between the real estate partners. Having a partnership contract is crucial to clear things up in case of any legal problems or when the partners decide to split up. Even when you partner up with a family member, a partnership contract acts as protection for both of you.
#3 Build trust. Building trust is the foundation of a profitable real estate partnership. If you do not trust your partners, your partnership will struggle and will not run smoothly.
#4 Communicate regularly. Finally, it is important to communicate regularly with your real estate partners. This point goes hand in hand with the last point. Regular communication between partners helps build trust among them.
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Related: The Ultimate Guide to Real Estate Syndication