When I consider investing in the housing market, seeking other real estate investors near me becomes one of my top priorities.
Taking on partners in real estate investing offers several benefits. Working with other home investors can give you a substantial amount of flexibility, extra finances, and additional knowledge that you can use to make better investments.
However, as a beginner investor, how do I go about finding real estate investors near me?
In this article, I will talk about finding other investors who share your interest in the housing market, the benefits of finding partners in real estate, and how to go about working with connected investors.
Why You Need Partners in Real Estate
As I said earlier, there are several benefits that you can get from working with partners in real estate investing. The simplest benefit that I would consider to finding real estate investors near me is that sharing my investment means sharing the risk. Investing in real estate comes with its own share of pitfalls, and partnering with another investor helps mitigate the risk.
While it does also mean that you will be sharing the profit, the fear of failure is the number one obstacle that stands in the way of beginner investors. So, knowing that you won’t lose as much money if you fail will give you the chance to start your journey in real estate investing.
But there are many other benefits to finding other investors for real estate, and they include the following:
1. More Financing Options
One of the biggest challenges that beginner home investors face is securing finances to be able to buy an investment property. Investors without a high credit score will find it hard to qualify for traditional mortgages.
And even when you do qualify for a real estate loan, the interest rate can hinder your progress and eat away at your profits if your rental property isn’t generating as much money as you originally hoped for.
However, a properly-structured real estate partnership will give you more loan options and a better combined credit score, which makes financing your investment easier and more efficient.
2. Access to Connected Investors
If I find real estate investors near me who are actively looking for other partners, the chances are that we are both gathering information about investors in the area. Sharing information between connected investors can rapidly expand my network of potential partners and contacts that I can access in the future. Connections add good value to any real estate investor, especially those who are just starting out.
Whether you’re looking for sources of information about the market, properties, buyers, sellers, or agents – connected investors and partners can exchange knowledge and help each other out.
3. Diversified Skills and Talents
While there are essential skills that every real estate investor needs to acquire, there are skills that some investors possess and others don’t. When looking for real estate investors near me to partner up with, I will always look for people with the skills that I lack and vice versa. It is because I want my partner’s strengths to cover my weaknesses if the need arises.
For example, if I’m someone who really enjoys doing math and looking at numbers, then handling the investment property analysis details can be my strength. Conversely, I’m may be terrible at people skills, and, as a result, I’m inefficient at handling the networking for our partnership. In such a case, I would look for real estate partners near me who don’t necessarily possess the best analytical skills but the ones who show the best networking skills instead.
How to Find Real Estate Investors
Now that you know the benefits of taking on a partner for investing in real estate, let’s talk about how you can find real estate investors near you.
There are numerous ways to find potential partners that are suitable for you. Listed below are the best and most common methods that investors use today:
There is no doubt that social media is the first thing that comes to my mind when I think about finding real estate investors near me. Nowadays, everyone is on social media.
When it comes to investors, there is a multitude of online communities and networks that you can find on social media platforms such as Facebook, LinkedIn, or Twitter. Such groups are usually focused on a specific type of property or real estate strategy. It means that you will find plenty of active members who are experienced or are looking for the same thing that you’re looking for: investment partners.
All you will need to do is be active in the said communities and make your presence noticed. If you find other like-minded individuals, then you can contact them with an offer. Also, being active in online communities and forums also means that others may notice and try to contact you first, which is a good thing, as well.
Friends and Family
Some of the best partnerships in real estate can be made with the people who are closest to us. Your friends and family can make some of the best investment partners because they are the ones who you can trust – people whom you know and who know you. However, depending on your particular circumstances and financial situation, mixing business and personal relationships can be a risky proposition.
Being safe means that it’s always best to get your partner to sign a legally binding agreement. The practice is totally accepted and expected in a business or investment partnership. However, it can be a sensitive issue when it comes to friends and family, as legally binding agreements might give the impression that you don’t trust them.
So, before considering the above option, make sure to approach it in a suitable way that does not compromise your relationships or the well-being of your investment.
Crowdfunding is one of the most popular methods for finding other interested investors that you can partner up with. In crowdfunding, a group of investors contribute money to your investment opportunity and receive a proportionate share of your profits. The practice’s become much easier nowadays, with all the options that you can use online for crowdfunding your real estate investment accessible with just a few taps on your keyboard.
When I’m looking for real estate investors near me who might be interested in crowdfunding my investment, one of my concerns is how trustworthy the investors are. So, the first thing I would do is to find the right platform for me that vets its investors and maintains high levels of security over data and online transactions.
One thing to keep in mind if you’re considering such an option is that crowdfunding can take time before you raise enough money to fund the purchase of a house or any other type of property.
So, it is generally considered much faster to find a few serious investors who are willing to contribute more than it is to find several smaller investors who are chipping in small amounts of money.
How to Work with Investors
So, I’ve found interested home investors that I can partner with. Now, what do I do next?
At this point, both you and your partner should be clear on your goals and how you want to achieve them. You’ll need to agree on a real estate investment strategy, the methods you will use for investment property analysis, and where you want to start your search for properties.
In other words, you will need to carry out the usual steps to real estate investing, but you’ll be sharing the tasks, knowledge, and responsibilities during the entire process.
For your partnership to be productive and deliver the results that you both expect, you will need to both play your roles and capitalize on your strengths while also cooperating and keeping one another in the loop.
So, here are the three pillars for successful partners in real estate:
1. Prepare and Research
Investing in real estate is all about knowledge and preparation. It carries over to partnerships, and both parties should do their best to prepare their own research regarding everything related to their investment.
So, to carry out your part, you will need to be knowledgeable and involved in every step. When meeting with your partner, be prepared to present your ideas and understand your partner’s at the same time.
If your partner tells you something you don’t know, don’t always assume they are right. It helps to look up everything they tell you and do your own research to learn more about it.
2. Stick to Your Goals
How do I craft the perfect pitch to get real estate investors near me or potential partners to agree with me?
It’s important to know that not all home investors will agree on your ideas or strategies. Disagreements and confusion often lead investors to give up too early and either change their strategy to something they are not comfortable with or end up in a bad partnership.
Partnerships that are built on disagreement don’t last. So, it’s important to persevere until you’ve found someone you’re on the same page with regarding everything related to your investment.
3. Share Your Knowledge
As I said earlier, one of the most significant advantages of real estate partnerships is sharing your knowledge, skills, and experience with your partners.
The chances are that before becoming your partner, they were doing the same thing that you were: learning and networking. Perhaps, they’ve gained knowledge about an amazing income property for sale that you can invest in, or maybe they are able to access a listings database that you can use.
Any information that you think your partner could use to benefit your investment is information that is worth sharing.
I would also add that nowadays, another thing that partners should share is their access to online platforms like Mashvisor. Online platforms like Mashvisor are extremely helpful for beginner investors, and both partners having access to such tools can significantly improve your productivity.
How Can Mashvisor Help?
If you’re a real estate investor, then Mashvisor can help you in many ways, including when it comes to your partnership. Mashvisor’s platform was designed to help real estate investors throughout the different steps of their investment journey.
If you’re in the process of learning about real estate, Mashvisor’s blog includes thousands of advanced and beginner guides on everything related to investing in the housing market. The platform itself can help you find income property for sale based on traditional and short term rental data.
Mashvisor also uses key metrics like the cap rate and the cash-on-cash return. The metrics are used to project the return on investment for each property on the platform, and they are included in our market reports to give you an idea of how each market is performing.
But when it comes to benefitting your partnership, Mashvisor can help you tremendously by letting you easily share information with your co-investors. The platform lets you share property listings, along with their analytics and details, to other investors in a professional easy-to-read PDF format.
Additionally, if you’re subscribed to one of our plans, you will be able to export market reports and share them with your partner to help you both look for the perfect income property for sale.
Related: What Is a Good Cash on Cash Return?
Finding real estate investors near me isn’t as hard as it may seem. With plenty of modern and online tools to help me throughout my venture, the process of finding partners in real estate is becoming easier and simpler with each passing day.
And being able to access Mashvisor only makes it more exciting as I look forward to sharing PDF reports with real estate investors near me and using analytics that will make me look like a pro.
So, whether you decide to search for a partner online or in your own household, make sure to follow the steps that I mentioned and play your role in building a long-lasting and prosperous partnership.