How to Partner Up With Real Estate Investors
With housing prices at record lows, many first time real estate investors want to get into buying real estate, but either don't have enough money to get started or aren't sure what they need to do. Finding another real estate investor to become partners with is a great way to get started, but many investors are apprehensive about finding that right person. Fortunately, once you know a few things, you can feel more confident about becoming a partner with another real estate investor.
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Instructions
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1
Learn about real estate investing. Real estate investing is a business, and going into it without knowing what you're doing is a sure way to lose a lot of money. Read books, take courses and educate yourself before looking for someone to partner with.
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2
Attend local real estate investing groups. Many areas have local groups that meet on a weekly, monthly or bi-monthly basis where members not only learn about real estate investing but also network with other members who may be interested in partnering with others to buy property. (See Reference 1.)
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3
Decide whether you want to be a silent partner or hands-on. You will need to decide whether you want to actually work on the property that you purchase and have a say in how the money is spent, or if you prefer investing the money (usually with a group of investors) to purchase a property where you will get a percentage of the profits but have a limited say in how the work is done.
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Work as a "bird dawg" (dog). Established real estate investors often pay bird dawgs (nickname for people that locate real estate for investors) to be on the look out for properties they may want to buy. Starting as a bird dawg allows you to build a relationship with the investor and teaches you what established investors are looking for in properties they buy. Many bird dawgs eventually do their first deal with another investor on a house they personally located.
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Search the Internet and newspapers. There are many websites (References 2 & 3) set up to match people with money to people that need investors. You usually have a limited say in how the money is spent, but the financial reward can often be much greater.
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Tips & Warnings
There are many real estate scams out there. It is important to "do your homework" before you become involved with an investor.
Always have a legal and binding contract between yourself and other investors that clearly states what each person is responsible for. You should have your own attorney and remember that if you are using your partner's attorney, that attorney works for them.
