HMW #126: How to find a real estate partner?Nov 01, 2023
Read Time: 6 minutes
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Is not having a partner holding you back from investing in real estate? Quite often partnerships are the best move for an idling investor. In today's blog, I (Alan) will break down 3 steps to finding that prefect partner.
Partnerships can skyrocket your career. You can lean into your strengths, overcome your weaknesses, and fast track your acquisitions. With partners, I went from 17 doors to 350 in just over two years! Partnerships mean you get a piece and not a whole pie, but it's more likely going to be a much bigger pie than you ever imagined.
However, a bad partner can sideline your goals and halt your ambition. You don't want to rush this and jump into any ol' partnership.
Whoa, looks like somebody's a little too thirsty. Partnerships are a slow dance, not Jamaican daggering. But the good news is it's only a dance with 3 steps. So, let's put your desperation to work so you can get all the benefits of partnership investing without all the post-daggering bruising.
Step 1: Figure out what you bring to the table
The number one thing you need to answer is, "why would anyone want to partner with you?"
Or maybe a better question is, "why wouldn't someone partner with you?" Is there a big numero uno that you must address, as you want to overcome any red flags you know you have already? It's important to understand that someone will be asking this to themselves before working with you:
- Is this person trustworthy?
- Does this person follow through?
- Does this person have experience?
- Is this person more asset than liability?
- Does this person have a successful track record?
- Has this person been a winner in the past in their other ventures?
- Does this person hang out in the right circle/network for this to work?
Once you understand how people are sizing you up, you get to work turning all your red flags into green flags (or at least beige flags.)
Also, you'll want to identify and hone in on your strengths. Mastering a real estate skill makes you an in demand partner. Here's what skills most real estate deals require:
- Deal finding
- Due diligence
- Funding (down payment, earnest, hard money costs)
If you can master one or several, then you are a partner that brings value to any real estate deal that helps make you a valuable partner. So, take a good look at yourself. Do you have mastery of anything? If so, lean into that talent.
Great, you can start by building out sets in improv scenes! We all started somewhere. You are, I suppose, ready for step 2 now.
Step 2: Figure out what you need from someone else
Now figure out what you need in a partner? If your answer is "everything," then guess what?! That partner doesn't need you. And you need to go back to Step 1. And maybe stop leading with that fake string in your mouth trick.
Do you know your biggest weakness? Is it lack of funding? Is it lack of deal flow? Is it poor networking? Great, a great partner is someone whose strength is your weakness. And chances are if this is their strength, they are weak in other areas. No one is strong in everything. You want a partnership where the sum of the parts is greater than than the whole.
And your needs in a partner often change from deal to deal, so don't think your entire real estate career forever will contain the same partners. And doing deals with different partners at the same time is completely a fine thing to do too. You aren't always looking for lifetime commitment in a partner, but sometimes that does happen as an added benefit.
But being transparent, truly knowing yourself, and having the confidence to say let others know who you are and what you are looking for will always aid in attracting the right partner. With that, you will be ready to slide into some DMs.
Wow, you might actually be ready for the next step. You aren't thirsty anymore, but on your way to becoming a thirst trap.
Step 3: Be ready to mingle
Now you know what you offer and you know what you need, so all that remains is matchmaking.
Where do you find your potential real estate partners? Often they are friends or friends of friends to start. This can work for sure. But you'll find better partners, and you'll appear to be a better partner yourself, if you are interacting with investors at real estate meetups, closing tables, real estate agent offices, mortgage conventions, open houses, construction sites, and of course social media. Hell, throw @housemoneymedia follow as a key first step! We also offer a private Discord community as well to chat with other investors and potential partners.
It takes work to find a partner and your efforts can be done in person or online. But you have to go to where those other potential partners will be in order to complete Step 3. And your life will change because of it. You up for doing this easy 3-step tango to attract a real estate partner?
I think you can too. See you in the House Money Media Discord!
- Identify your current skill set
- Master a skill or two that is in high demand
- Overcome your weaknesses through complementary partnerships
- Join a community like the HMM to meet and interact with other investors