By Iman Yusef-Yahya
The author has permitted the reprinting and redistribution of this article.
Working Partner
When investors first launch out into the world of real estate investing, two of the biggest problems are lack of experience and lack of ready cash (or working capital). Either or both can be formidable problems, and can stop you before you ever begin.
In the early days of your business, you might want to consider finding a partner who will not only work with you, but will also help with the financing. The key here is to choose wisely and carefully. Otherwise, you may be facing a disaster.
Setting Guidelines
Before seeking out a working partner, take a few minutes and write down your goals and your specifications. What are you looking for in a partner
Below are a few guidelines
- Find someone who is of a different personality strength than you. If you are a strong leader, find someone who is a good follower. If you are strong in the visionary area, find someone who is detail oriented. This way your strengths and weaknesses will meld and harmonize together.
- Never agree to a 50 – 50 partnership. If you are seeking a partner, then it is your deal and your business. Create a 51 – 49 partnership. Otherwise you will have a two-headed monster. When you come to an impasse, you will call the shots.
- Seek out a partner who has a steady income and cash reserves. After all, you are seeking a partner to help get you launched and cash will be needed.
- Write out the guidelines and stick by them. Part of these guidelines will be your separate roles in the business. Agree ahead of time of who will do what. Review these guidelines periodically. If one area is not working well, adjust accordingly.
- Have the same end goals. Are you planning to buy and hold Or rehab Or flip Are you looking to sell to investors or end buyers Nothing will work if you are headed in separate directions.
- Your morals and values must be a good match. If your intention is to build a strong reputation of high integrity, you don’t want to partner with someone who thinks nothing of cutting a few corners.
Your partnership may be set up formally as a shared LLC, or you may simply create a written agreement. Either way, set it up so you can make an easy exit. For two reasons – 1) if things go wrong, you may want out quickly, and 2) as you grow in knowledge and cash flow, you will no longer need or want a partner. You’ll make much more money on your own.
Bird Dogging
Another way to partner, which is less restrictive, is to find investors who will take you on as one who locates good deals. This is called bird dogging. You will search out the bargain properties for the investor. The investor will pay you for the ones that are accepted and sold for a profit. Many investors get their start in this way.
Spending your spare time searching for bargain properties (bad properties in good neighborhoods) is an excellent way to build up your real estate investing education. Rather like on-job-training.
If you take the money you earn from bird dogging and invest it back into your own business, soon you’ll have enough saved for a down payment on your own investment property. After that, you’ll be doing the locating for yourself. And one day, you may be hiring your own bird dog!
Never be discouraged simply because you do not have the needed cash flow to begin working your real estate business. No one needs to tell you that real estate is a money making venture. You already know that. If your desire is strong enough, you will find a way to make it work. And for you this may mean finding that just-right partner.
Using a marketing system that allows her to find some of the very best ‘below market’ deals around the country, Iman Yusef-Yahya’s system has enabled her to assist other real estate investors looking for simple, high profitable deals. Get instant access to these profitable deals at httpwww.ImanAndJoesWholesaleProperties.com
If you would like to take advantage of the market and learn how to invest in real estate and you are local to the Dallas Fort Worth area, I know a really great teacher and mentor here in Arlington Texas. Please take a look at his web site: DennisJHenson.com, Dennis has a great Mentoring and training program, I know because I am one of his former students. I learned a lot from his one on one teaching technique. – Michael Harman 817-457-7572 mchfun.business@gmail.com>
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