Is Partnering Risky?
I am having good sucess with RE investing on my own but as with most people, there is not enough time in the day to do all the things I want to.
I am considering offering my good credit and/or substantial cash to rehabbers, birddogers, wholesalers etc. but don't want to get stung by crooks or cons or just lazy folks.
Any body trying this succesfully yet?
Please, no replies or theories on what you have read in RE books. I am not trying to be rude but just want real stories, not ideas only.
I feel I can really help someone who is honest and hardworking and we both make money with rehabs etc. but I don't want to get into a bad situation or lawsuits etc.
Ricker:
Why dont you hire a full-time assistant to do all your personal business. You spend your time doing what makes the most $$$$..
Remember, the less you do, the more you make!
Best Riches,
Jeff Adam
[addsig]
I wish it was that easy. I really do. I run a large sales force for a huge insurance company as my primary business. I am self employed in the ins position but I still have responsibilties that only I can carry out. My RE investing has caused that area to suffer as of late.
Thankfully, I will be retired from that in a year or so at age 44. Then, I will just do RE investing and fishing
Well there is a saying that's goes if it ain't broke don't fix it! I think you can apply that here... if you are already successful doing it on your own why would you put up with the headaches of a partner... cause you are going to have your way of doing things and they'll have theirs and if you don't see eye to eye all hell could break lose. Just my two cents
Luke
Quote:
On 2004-08-06 01:06, Ricker wrote:
I am having good sucess with RE investing on my own but as with most people, there is not enough time in the day to do all the things I want to.
I am considering offering my good credit and/or substantial cash to rehabbers, birddogers, wholesalers etc. but don't want to get stung by crooks or cons or just lazy folks.
Any body trying this succesfully yet?
Please, no replies or theories on what you have read in RE books. I am not trying to be rude but just want real stories, not ideas only.
I feel I can really help someone who is honest and hardworking and we both make money with rehabs etc. but I don't want to get into a bad situation or lawsuits etc.
Partnerships can be extremly successful and lucrative. From my experiences:
1. Get everything in writing
2. Discuss all of the "worst (and best) case scenarios and make sure that everyone can live with the possible consequences.
3. Partnerships are successful when the partners bring different strengths to the table. Too often I see 2 people with no money, credit, or experience forming a partnership. They can work, but it's not the best case scenario.
My favorite are the people who are successful, know that money can be make in real estate, but they are not too intersted in learning about it themselves.
That said...you do give up some element of freedom (unless stated otherwise). From my experience, if you're good at what you do, people will notice and want to become involved.
Hibby, Funny you should mention that.
People have been seeing me be succesful for the last year and a half or so and wanting in. But most of them just want to throw money at me and me do all the work. I have partnered up with a family member on some bigger deals but just to pool our borrowing power mostly. I still find the deals but he has great insight and is more careful so he keeps me from buying every thing that comes along.
What I was thinking about now was finding a partner who will go out and find deals to rehab or wholsale and then do most all of it while I put up the money and credit. Or even find land.
The reasons I want to do this, even though already succesful, are numerous.
1. The market is red red hot here in FL! I want to strike while the iron is hot and make as much as I can for the next two years or so. Then maybe just fish!
2. I know the power of duplicating efforts. I have dozens of insurance agents who are out there everyday selling for me and it has made me a very nice income. REI will be even more lucrative as far as up front cash.
3. My main business (insurance) is suffering from a lack of attention. My agents that work for me wonder where I am in the middle of the day when I am out showing land or lots to builders and they need to talk to me about insurance questions.
4. I like to help others and I like to see hard workers, who may be just down on their luck, get ahead. I was there, not too many years ago. People helped me. [ Edited by Ricker on Date 08/06/2004 ]
Ricker, I sure wish there were more like you out my way. My story is this, I'm a beginner finishing my first rehab, no help from anyone, pure sweat baby. Two years ago I was broke in the ministry as an assiastant pastor. Now I still serve in the church but am a full time Real Estate Agent. My 3rd month of full time I took home after taxes 15K. Already at this early stage don't want to buy and sell just for others, I want to do it for me. I like getting in, kicking but and being out. I was so mad the other day. I had this great deal, that I couldn't do because of $, I called a budy and asked him if he wanted to make 50k in 2 months(aprox), he said "sure, if it doesn't involve labor. Ahh I got so mad. People don't realize with a little labor, and organizing they can make so much cash. My father who since passed, was an agent as well, and told me RE was allways the way to go. I know I'm biased but he was the hardest worker ever. I'm talking old school style. This man jacked up a 200 year old home, dug out the celler by hand, laid footings and walls at the age of 60. Mabye thats why he's not around to help me. But even if I'm half the worker he was, Ive got a leg up on everyone in my area. Ambition, a desire to keep learning, and your money Ricker, we could go far.
Darren
Daren, three words for you: Move to Florida! LOL
Ricker
I think you've got a great plan, but please interview a bunch of prospects before settling on anybody.
And since partnerships so often fall apart because they've been inadequately thought through and not well prepared, have a very competent lawyer do the written agreement for you...where YOU are in control, since you're the gold bearer in your deals.
[addsig]
i just don't say the word "investor" i tell what i'm looking for and that's it. you have to look for agents that meet your needs you may have to talk to many to find one that will work for you. you pick the agent don't let them pick you........kenmax
Actually, I've found that business relationships work best when each side evaluates the other, is comfortable with the other. It's got to be a two-way street and one that works for both.