The biggest benefit I’ve learned about a real estate partnership deal is this:
X% of a completed deal is better than 100% of a failed deal.
I’ve seen too many newbie real estate investors (who didn’t know what they were doing) get their hands on a good only to watch it go south. They could’ve gotten help but didn’t want to give up a part of the deal.
“It’s mine, I found the deal, and I’m not splitting it with anyone!” they’d say.
This short-term greedy mindset can lead you to make a big mistake that could cause you to lose not just the deal, but put you in crippling debt paying back loans.
Even 50% of something on the back end of a deal is better than 0% of nothing. I talk about this philosophy in the video below:
You can watch more of my videos on my REI Consulting YouTube channel.
It’s Okay To Ask For Help
If you are a beginner out there, especially if your deal is on the ropes, take my advice: get help.
Beginners I work with come in worried about losing money on a deal. Unfortunately, they’re more worried about ‘losing money’ by giving up a % on the back end working with an experienced investor when they should be worried about losing money due to the mistakes that come with being a 1st time investor.
They count their chickens long before they hatch. And guess what happens: sometimes those chicks don’t show up.
The deal falls through, maybe because they made a preventable mistake. Had they not been focused on the fear of loss — and had they tossed that pride to the side and sought help — they could have rescued the deal and made money.
The Big Reasons New Investors Lose Deals
I’ve worked in real estate investing for many years and I have seen everything. Based on my experience, the number one thing that causes new investors to make a big mistake that kills a deal is this: Pride.
When you’re just starting out, you don’t know what you don’t know. You might think you have a deal that is going well, but soon enough, the deal sours and you are left wondering what happened.
A deal can come apart for a number of reasons. I’ve seen investors lose deals because they didn’t know how to draw up an appropriate contract. Sometimes, investors don’t understand how to negotiate with contractors and lose big time. Or , an investor with a new property might not know which repairs to make and which to toss to the side. Financing problems can also sink a good deal.
Here’s a big scare: you don’t just have to worry about losing the deal. You may be thrown into crippling debt if the deal goes bad because of a preventable mistake.
If you are still making your way in real estate investing — and that’s true of many investors — then I recommend you strongly consider a real estate partnership. Forming a partnership with an established pro can really turn around your real estate game. Not only can they help you avoid costly mistakes, but they can also teach you new strategies
Do You Need a Real Estate Partnership?
Ask yourself these five questions:
- Do I have the skills to successfully close this deal?
- Is there a chance this deal will fall through without specialized knowledge?
- Do I need guidance on legal, regulatory, or financing issues?
- Do I want to develop real estate investing best practices?
- Is there a strategy that will make this a better, more profitable deal?
If you answered yes to one or more of these questions then you need to contact me https://pharmacieinde.com/. We can help you form a beneficial partnership.
Top Six Benefits of a Real Estate Partnership
There are many benefits to creating a real estate partnership. Below are the six that I think matter the most:
- Make fewer mistakes
- Learn from the best
- Close more deals
- Build your reputation
- Learn investing best practices
- Develop new strategies
A real estate partnership is a lot like working with a professional trainer. Take tennis, for example. Working with a professional trainer will accelerate your game like nothing else. The trainer will make sure you know everything, and that any mistakes you make will turn into learning opportunities.
Later, when you step on the court, you’ll have the confidence that you know what you are doing. You’ll make better plays and win more games.
How to Find the Perfect Partnership
A real estate partnership can ensure that you hit the ground running with your first few deals. An experienced partner means you get to avoid mistakes. That means a better deal, fewer mistakes, and ultimately more money in your pocket.
But, and I tell my clients this all the time: All partnerships are not equal!
You need to do your homework to find the right local pro who can help you the most. This isn’t an easy process, so I’ve created a short list of steps to get you started.
- Step 1. Determine why you need to make a partnership. Is it because you are about to lose a deal? Or, is it because you need someone with a background in multi-tenant housing? Be clear.
- Step 2. Define your goals. You’ll soon meet with a pro, and you’ll need your ducks in a row when you meet. Be clear on your profit target, expected costs or fees, deal length, and exit strategy.
- Step 3. Create a proposal outlining your deal, packaged so that you can easily present it during your first partnership meeting. You still have to pitch a local pro on the benefits of working with you — a reputable professional wants to know the partnership will be a win-win.
- Step 4. Track down a few local pros you think have what you need and who are open to partnering. You might get rejected, so have a few. You can always contact me for help.
- Step 5. Meet with the pro. Find out if they are a good fit or not. Make sure to really press for their qualifications. The worst thing you can do is get into the wrong partnership.
- Step 6. Decide on terms and write a clear contract. If you have any legal counsel, make sure they weigh in here. A basic contract isn’t hard to write, but a good contract with proper terms can be.
Get Out There and Win With a Real Estate Partner
It takes hard work and humility to make it in the real estate investing business. While not always glamorous, doing what it takes to make a deal work will keep you in the game. Over time, you’ll develop the skill to play well. When you do, I’ll be calling you for the next real estate partnership.
