Real estate investing is where it's at. At least that's what everyone says.
Done right, you can make a tidy sum. Make the wrong mistakes, however, and you could lose a lot of money.
If you need help finding a real estate investor, reach out to a top, local agent. They have likely worked with real estate investors and may be able to set up a meeting.
One of the many decisions you must make is whether to bring a partner into the deal. Let's look at some benefits a partnership can bring and how to find real estate investors.
Benefits of a Partnership
There are many reasons for and potential benefits of joining up with a partner. On the practical side of things, a partner can provide a skill set or experience that you lack. In fact, this should be one of your primary considerations when choosing a partner. They also may have a network and connections that would be very beneficial to your ventures.
There are also financial benefits. You can spread your resources out over more projects or take on bigger projects. More types of financing will be available to you. Plus, a solid partnership can build confidence when pursuing more investors.
You have to give up some control. Plus, it's unlikely that you and your partner will agree 100% of the time. Sometimes, however, that's a good thing. For example, having to duke out a decision can stop you from making a bad, impromptu one.
Building Your Plan
Before you begin searching for a partner, it's a good idea to put together your plan. Most investors will be very wary of putting money into a half-baked idea from someone they may not even know.
Of course, there is a spectrum. Some investors will be happy with a verbal rundown of the plan and a handshake. Others will want a detail credibility package.
Finding the Right Partner
There are several potential sources of real estate investing partners. A few ideas include:
- Family members or friends
- Landowners near your project
- Other real estate investors
- Real estate agents
- Real estate investment groups
- Angel investors
- Venture capital firms
- Local housing, government, and real estate organizations
- Social media/the Internet
When looking for a partner, start with those around you. As you move out of your network, it's quite possible that people will ask if those that know you are willing to back you (or why not).
Check out real estate investment associations in your area. These are a great place for learning and meeting other real estate investors. Keep in mind that many events are structured to be selling you something. Don't get carried away with the hype and focus on your true purpose for attending the event.
Do you already own an investment property? Why not approach the owner of the adjacent property? If you have a similar vision, this could be a great opportunity. Once you get those properties in a good position, you can expand and move on to bigger and better projects.
Don't underestimate the power of the Internet. There are dedicated websites that allow investors to network with each other. Plus, as amazing as it sounds, you can find potential partners on social media like Instagram or Facebook. The point of social media, after all, is to connect people to one another.
Regardless of how or where you find your partner (or if you already know them) put everything about your agreement in writing. It's amazing how money can bring out the bad side of people.
Decide how much control each party will have and over what. Assign responsibilities. Spell out everything clearly. Hiring an attorney to draft your agreement is the best choice to ensure that both parties are fully protected (as much as possible).
Finding the Right Properties
Once you've got your partnership set up, it's time to look for investment properties. Even if one of you is a real estate agent if you are buying in an area that you are not familiar with, finding a good agent should be your next step.
A local real estate agent with their unique insight into their market can help you find the most promising properties. Remember, investment properties don't always come wrapped in a shiny package with a bow on top. They may require some work to get them in tip top shape again. Don't shy away from fixer-uppers as flipping them can often provide the biggest return on your investment in the shortest amount of time.
How do you find an agent skilled in finding good investment properties? Contact us here at Clever Real Estate. We'll put you in touch with a top-notch agent with the right skill set in your area.
Ready for the cherry on top? Where legal, our Clever Partner Agents offer a $1,000 Home Buyer Rebate on properties that cost more than $150,000 or up to 1% on properties that cost more than $500,000. You can put that money into closing costs or starting repairs on the property. Regardless of how you use it, it's a great way to jumpstart your investment.
When you're ready to sell and start over with a new property, your discount agent will be happy to list the property and bring you a parade of interested buyers.
Ready to get started? Contact us today!