A great way to get into real estate investing is to work with other people who have been there before. But how do you go about finding a people to partner with you? In our latest post, we will talk about how to find and form an investing partnership.
Who should you partner with?
So how do you find and form an investing partnership in Fort Wayne? It isn’t about who you like the most, (although that’s part of it) but rather who can you trust to work as hard and with as much passion as you do. Look for others to partner with who share your knowledge, drive, and commitment. Do you love the idea of a partnership or club, or just like the idea of the rewards? Will the people on your team work with the same drive month after month? Will they be able to make their financial obligations? You are going to want to screen people carefully and put all expectations in writing.
Some partnerships or clubs will charge a hefty entrance fee, with much lower payments each month. This will weed out the people who aren’t serious about moving forward with a successful investing partnership. But even with high entrance fees, you can still expect to deal with people who become lazy over time. You need to have a plan in place for handling partners who aren’t pulling their weight.
How do you find them?
So how do you find and form an investing partnership in Fort Wayne? Where are they? You may already know many people who would be interested in an investing partnership. If you are looking for people to partner with, put the word out. Go to networking events and host your own meetings where you present the benefits of partnership and discuss what you want to accomplish. It’s common to form a partnership. The hard part is making it work and maintaining it long term. You want to find a sweet spot with how many investors you choose to work with. Too few will not produce enough funds to make substantial investments. Whereas too many people will cause fights, headaches and be very tough to manage overall.
Define what you want to invest in.
So how do you find and form an investing partnership in Fort Wayne? Make sure you create specific goals and outline what each member needs to do to get each other there. Decide what types of property you want to invest in. Land, commercial properties, multi-family or single-family homes. There are niche markets that might be of interest as well. Industrial properties, mobile homes, etc. Take into consideration if other property types will be potential purchases also.
Set up and structure payouts.
So how do you find and form an investing partnership in Fort Wayne? Here’s another point about investment partnerships: Profits should be divided proportionately to the amount put in. Are monthly contributions expected? What about minimums? Caps? You will also need to factor in administrative costs and set aside money for things such as making copies, filing fees, repairs, etc. What is covered, vs. what is not covered needs to be clearly defined. Have a meeting to discuss this in detail It’s imperative that everyone understands the structure. Cover all scenarios: new people joining, people leaving, and how you choose what to invest. it. Your property standards should be black and white and always adhered to.
This is business.
So how do you find and form an investing partnership in Fort Wayne? This isn’t a friendship, even thought it may feel that way. It’s business. Andit will need to be treated that way. Create an operating agreement, pay your taxes, consult an accountant and a lawyer. It will help exponentially in the future if you get everything in order upfront. Decide if you want to form a general partnership, an LLC or a limited partnership. If you aren’t sure, talk to a professional to find out what will work best for your team.
But have fun.
So how do you find and form an investing partnership in Fort Wayne? At the end of the day, this should ultimately be fun and exciting. The people you work with should bring inspiration and a positive attitude to the table. Name your business something clever and give yourself a great title. It can be anything you want. This will help to get you thinking creatively and allow you to really enjoy what you are building together!