Having the ability to partner on deals is one of the most valuable intangible assets out there & would be considered one of the greatest benefits of a strong personal brand. What makes a good list of potential partners so valuable is that partnering on deals diversifies your risk. For instance, if you’re planning to do 2 deals this year by yourself, to make a decent income you’d have to do two fairly risky deals & like anything overly profitable there’s a chance for disaster, so those deals may pay off greatly or they may cost you greatly. On the other hand, if you work with a partner you can now do 4 deals & you can still do those 2 risky deals with the potential for great return, but you could also buy 2 cash flowing investment properties at the same time. This way, if those investments don’t go the way you want them to you’re left with less downside & you now have cash flow to help cover the costs of the riskier developments.
This post will review some easier than expected ways to find partners and make you yourself a valuable partner in someone else’s eyes.
What do I need to do to make myself a desirable partner?
Sounds like you’re about to learn some dating advice right? To be honest it basically is dating advice, a partner needs to be trustful, have a good track record & bring something unique to the table. Trustfulness & a good track record is simply just related to how you treat people you work with currently. The best rule of thumb to keep yourself in the good book is simply DWYSYWD – Do What You Say You Will Do. If you let someone know you’ll get back to them by tomorrow, actually get back to them! Don’t make promises you can’t follow through on and people will see you as a stand-up, trustful partner. It also adds a level of professionalism to your personal brand.
What do I mean by ‘bring something unique to the table’? In Real Estate this means one of a few things: Professional Contractor, inspector or Handy man specialist, Money – Guy; can you write conditional offers or make all cash purchases happen?, Accounting Guru; do you know strategic accounting methods to save money on investment properties?, Real Estate Associate with access to MLS, Deal generator; are you able to find properties before they’re on MLS & get them under contract? Or Lawyer / contract specialist. There are tons of ways you can stand out to a potential partner but you need to market your skills or nobody will see the value in you as a partner. Many people would love a chance to go in on the deals we find but very few get the chance on truly good deals unless they’re bringing something extra to the table!
Where Can I Find Partners?
If you’ve got a valuable skill set & a good track record in the industry the best 2 places I’ve found to find partners are at networking events & through Kijiji. Networking events are great for finding capital just simply start chatting with people & eventually you’ll find someone whose skill set compliments your skill set and it’ll make that good deal all the more profitable! Do not just take someone on for the money they’ll provide, if you’re the one with a investment opportunity & the only people who will take you seriously are rookies with some capital and no experience, you might want to reconsider how good your deal truly is. Kijiji is basically the same as networking, post an ad saying you’re ‘looking for an investment partner’ and see what happens. You may find someone really great, but don’t take the first schmuck who replies to your ad! Do your homework!
So remember, partners are important to reduce your risk & help you complete more deals, they’re also important because their knowledge about different sections of the real estate game is even more profitable than their investment capital!