This evening I want to take a second and discuss why partnerships are so vital when starting out in the real estate investing. Yes people do it all the time by them selves and yes there are other ways to accomplish what I am about to share. These are my opinions and want to help you get in the game.
I fist started this company in June of 2017 not knowing how I was going to accomplish my goals and ideas I had but there is one thing I did know and that was I needed to Start. People spend to much time thinking about how’s and when and what if I screw up. I took a different approach and just started. Start with creating a business name and how it will be formed (LLC, S Corp, C Corp). I chose to go after multi family for several reasons. I don’t like the flip game. Its to small of money and you will just continue to chase these small deals. I wanted to go after big deals where you can have economies of scale and even a small ownership can be a big chunk of money.
Second I started analyzing properties. I got ahold of many agents and asked for simple documents like T12, P&L, Rent roll and any other documents I can review. I had a stack 2 feet tall of properties I just start analyzing them so I can learn about the properties and learn to identity things in properties others may miss. Why are expenses the way they are? How can I cut expenses? What are market comps? Is there Value Add? And so on and so forth.
After I knew what I was looking at and looking for, I started looking for properties in my local area. I started just by driving neighborhoods and identifying properties I may be interested in. I found I wasted a bunch of time just driving. I decided I will just contact every apartment so I started a mailing campaign to get owners attention. After my first mail run I got a call. Someone wanted to sell there complex. It paid off. Long story short on that complex is we got it owner financed and it is currently fully renovated and 100% occupied.
I couldn’t do all this alone. Something was missing. PARTNERS. I knew people much smarter than me and started reaching out and was able to partner with the current other owner. After some time in search we then partnered with Big Wheel Capital to help raise funds for our acquisitions. This turned out to be a fantastic partnership for us because they made some of our deals happen and it has been pivotal having these partnerships in place to grow.
To finish it off, I want to say don’t be afraid to partner with those around you. Get with like minded people and share each others strength. You can exponentially grow your investments faster and with more upside. Partnership are vital in real estate. If you need someone to partner with, feel free to reach out to us to see how we can help you grow. Anyone can do this. Let us help you.