Patrick Riddle here, with a question:
What is holding you back from doing more deals right now?
Lack of money? Lack of credit? Lack of knowledge?
Or lack of an effective real estate power team?
Well, if you can’t beat em’ yet, join em!
Whatever it is that you need to get a deal done, there is somebody willing to provide it and partner with you.
If you have a great deal you are working on, there is absolutely no reason you can’t get it done!
Get involved in your local real estate investing groups… affiliate with the real players in your market… and get some real deals done together.
Half of a great deal done is much better than keeping 100% of a deal that never closed!
I often partner with investors in my market who need various loose ends in a deal tightened up. Cash, credit, contacts, etc. … and we get it done.
We actually closed on a deal today that we partnered on that is going to turn into a “win-win” for everybody involved.
Check it out…
We bought the property for 250K, with some favorable terms, and we’re planning to lease option it for about $340k. It doesn’t need much work and the holding costs will be relatively low, but the seller did need some money ($20k cash at closing) to be able to sell it and move on.
This upfront money was provided by one party and the deal was provided by another — and a profitable partnership was born!
A similar situation is most definitely happening in your market as you read this.
Deal partners vs. business partners
Ok, I think it’s important to explain that there’s a difference between a deal partner and a business partner.
A business partner is someone who is a stakeholder in the entirety of your business — think operations, not just a single deal, but in ALL your deals and your profits and your losses.
And, a lot of new investors make this mistake because they’re scared… they want to share the risk with somebody. They want to collaborate and do this gig with another person.
And they end up jumping into business partnerships too early.
Unfortunately, a lot of times I see those business partnerships with newer investors go sideways after a short amount of time or even take them down, sinking their ship. 🙁
So, for the sake of a security blanket, many newbie investors make the mistake of jumping into a whole business partnership too quickly.
It’s definitely something to think over thoroughly before taking a step.
Now, a deal partnership is when you partner with someone on specific real estate deals. Makes total sense, so go ahead and step into those sooner than later.
Why?
You can leverage other people’s assets, their experience, their knowledge, their expertise, their money/funding…
Basically, they bring to the table what you don’t have.
Partnering on a deal can really accelerate your ability to level-up your real estate game.
Final note
Make sure that your partner has something different to bring to the table that you do.
A lot of times, people make the mistake of partnering with somebody quickly, but without really assessing: Does this person bring unique strengths that I don’t have… whether it’s actual resources or assets or experience or knowledge or expertise or skills?
You don’t want to just partner with somebody who’s a clone of you. You don’t need you times two. You need somebody who complements you, not overlaps you.
So, make sure that you focus on deal partnerships quickly, but business partnerships slowly… and make sure that your partners are bringing something different to the table than you are.
Get to it!
So, start building your list of investors in your area immediately. Figure out what their expertise is and what they can bring to the table in a transaction, then play the matching game when you get your next deal by figuring out which investors would be the best fit for you to start working with.
Now all you need are some deals!
So, get out there and get something under contract!