How to Find Property Investors
Finding investors to partner in a property investment is a challenging process. You need to determine how to assign responsibilities and rewards. In general, most group property investments are those with cash flows - rental properties for commercial businesses or apartment tenants. One of the more common arrangements is that of "silent partnerships" -- an arrangement that provides a fraction of the revenue to each partner proportionate to the investment without giving management power to every partner. Finding trustworthy partners, however, can be a daunting process.
Other People Are Reading
Instructions
-
-
1
Inquire among friends and family members about anyone who might be interested in joining you in a property investment. Make clear that you will require a formal contract that puts the agreements into law. Even long-term friends and family relationships can be altered significantly when finances interfere. People who already trust you are more likely to enter into a financial relationship of this kind.
-
2
Attend local real estate events and get to know brokers and other business people related to the business. They may be able to introduce you to lenders, real estate brokerages and others such as construction companies all often take stake in developments that can assist you in finding partners for a venture. Individuals aren't the only people who tend to enter these kinds of investment partnerships.
-
-
3
Work with a lawyer to develop a partnership agreement for the investments that you have in mind. In general, the more responsibility and investment that a partner commits, the greater percentage of the returns they will expect. Don't accept any investment from outside sources until you have finalized all relevant contracts and created the company to hold the funds.
-
4
Take investment from all the partners and use it to fund your real estate acquisitions. Continue to uphold the contracts as the investment either performs or falters.
-
1
Tips & Warnings
Perform research on the backgrounds, credit ratings and financial situations of all partners before you enter into an agreement with them. This is also referred to as "performing due diligence" in business terms.
Some online social networks facilitate real estate partnerships. See the resources section for examples. Networking events for real estate investors can also introduce you to potential partners.
References
Resources
- Photo Credit Thomas Northcut/Photodisc/Getty Images
