Getting started in real estate and wondering how to find a business partner with money? You might want to read this article!
If you know how to get started in real estate but don’t have the financial means, then real estate partnerships are the ideal solution for you. As a matter of fact, it is the best way to invest in property especially when it comes to financing rental properties.
So, how do you go about finding real estate investment partnerships?
#1. How to Find a Business Partner with Money: Know Where to Look
Many times, the answer to how to find a business partner with money depends on where you look. Who are you considering to become your partner? Are you looking in the right places to find them? Are you looking in all the possible places?
Actually, there are plenty of places, people, and platforms that could help you find a business partner if you look around you. Here are a few to consider:
Family & Friends
The best part about partnering with a family member or a friend to buy investment property is the familiarity and trust. In the real estate business, it is crucial that you work with people whom you can trust and build a professional relationship with. Moreover, your family and friends are the people who have their interest in mind as well as yours. Therefore, most probably, they will operate in a way that is best for both of you.
However, there is one downside to this type of real estate partnership. There have been many cases where family members and friends lost their relationship due to disputes. So, if you know someone you can trust, go ahead. If not, then you might want to look at the rest of this list.
Co-workers & Acquaintances
If you can’t find a partner in a family member or in your circle of close friends, then go ahead and expand that circle. Look for a business partner at your workplace or maybe someone you’ve worked with previously. Think of your acquaintances and remember if you know someone who might have the money to invest in rental property. Even though they are acquaintances and not in your immediate circle of relationships, you still know a little about them. Most importantly, you know if the person will be a good professional match for you.
Connections
If you work on building your connections right, you won’t ever ask the question of how to find a business partner with money. But, how do you build these connections?
One way would be creating or joining a real estate investment network. This type of network can even be online and specifically designed for real estate investors to connect with each other. The good news is most of these members are real estate investors who are looking for the next investment opportunity.
Another way would be starting or joining a real estate investment club. I think this is the best way you could find like-minded people with whom you can build a professional relationship. It allows you to engage with other investors and take part in events and various related activities. This way, you can learn more about potential partners and discover the best way to approach them.
Related: How to Build and Maintain a Real Estate Investment Network
Websites
How to find a business partner with money through real estate investor websites? The answer is obviously to subscribe! Real estate platforms with lively communities and comment sections usually gather investors from all over the country and will help you meet investors who might be looking for such investment opportunities.
2. How to Find a Business Partner with Money: Know What to Look For
Now that you know where to find a business partner with money, it’s time to learn what you should look for in that partner. What qualities should your real estate partner have?
Trust
Trust is a crucial quality that you cannot compromise for any reason at all. Before you get to talk to this person, make sure you run a thorough background check on them. See if they’ve had real estate partnerships or even general business partnerships before and talk to people who have worked with them. This way, you can build an initial basis for trust between you and the potential partner.
Personality
Find a business partner with a complementing personality. And, yes, think of it as a romantic relationship. You don’t have to have matching personalities, but at least you should be able to understand each other. How else will you efficiently and successfully manage an investment property together?
Objectives
This is where you want to pay attention. Again, think of this partnership as a romantic relationship. Find out what their objectives are in the long and short run. See if you share the same interests for a rental property business. Find out their level of motivation, if they are motivated at all. The last thing you want is a partner who would leave you hanging mid-way.
Diversity
How to find a business partner with money and with a different professional background?
This is the reason we said you should join a real estate investment club or online network. It allows you to find investors from all different professional backgrounds. An accountant would be a good partner if you are a doctor, for example. A lawyer can make for a great partner as well. This way you can make sure that both of you are contributing to this partnership.
Related: Real Estate Partnerships – 5 Important Factors to Consider
#3. How to Set Up a Real Estate Partnership
At this point, you have learned the basics of how to find a business partner with money. But, how do you set up a healthy partnership with them?
The only tip we could give you for setting up a partnership is about the partnership agreement. Make sure you include EVERY single detail of this partnership in it. Start with the partners’ information, your individual contributions, all the way to roles, tasks, profits and loss contributions. Make sure it is an inclusive agreement so that your rights are protected.
Related: What Is a Real Estate Limited Partnership?
#4. How to Find a Business Partner with Money: A Tip from the Pros
In order to establish any type of business and find the right partner, you must prepare your business plan. Otherwise, I doubt you can convince anyone of your genius ideas. And of course, a real estate business plan needs to include a profitable investment property.
So, for that purpose, we introduce to you our investment property calculator. This tool will help you throughout the process of buying an investment property. You’ll be able to easily find positive cash flow properties (Traditional or Airbnb) that are sure to convince anyone to join you. This tool will calculate all the relevant metrics for you to find the best real estate investments for 2019 and you can include it all in your business plan. It’s the best when it comes to accuracy and efficiency. This way, convincing a business partner will be a piece of cake for you!
Sign up to Mashvisor now to try out this tool.