I am going in with 2 partners and am wondering how best to structure the financing for the first deals. We all have equity in our homes. Should we borrow on that or go another route. Are SBA loans an option.
why are you going in with partners?
just for fun? can each person do something different or bring something different to the table, or are you just looking for problems down the road?
if you have money, good credit, and equity, I would go do it on your own. you don’t need to split the profits three ways, and neither do your buddies.
are you in columbus? several of us who post here are in central ohio.
I had been thinking of doing it on my own for a while. I think the main reasoning to go with others was that we could get more money together to do more with. Each person brings something to the table but I can do it on my own if necessary. We figured the larger projects we worked on the more investors we could get to keep building on. Part of me thinks I could just do that on my own.
I am in Cincinnati but go to Columbus pretty frequently. Are there any good REI Club meetings near you.
we just had our REIA meeting Tuesday, and it seems to be a good club. lots of networking oppty’s, etc. it’s the only club i’ve been to, so i don’t have anything to use for comparison.
just to let you know why i brought up the question, a good buddy of mine and myself talked about partnering for years, but getting to people (and spouses) moved off the dime is much harder than just going and doing it when you’re ready. he and i never partnered in the beginning, but he “sacked up” and started about a year ago. i just started a couple of months ago. if things continue to go well, we can still decide later (and have discussed) partnering on some larger opportunities. but i’ve heard many horror stories about partnerships.
it’s nice if i want to buy something (or eventually sell), i can just do it. i don’t need to get votes from anybody else.
Cecsix is right. If you can, do it on your own. Look at it this way:
You and your friends start a RE business. The business owns nothing to begin with, but you want financing. Any financing the the business does get is going to be secured by individuals anyway. If everyone gets started on thier own, based on their individual merit, it’s a much better start. After you have all got something to bring to the table start your company and place your properties in the company (if your really set on the partnership thing). Now when your company requests financing you’ve got something to show, your “company” is holding multiple properties.
Just my $0.02
Good Point.
What kind of deals are you doing:rehabbing, landlording etc.
I am having a hard time deciding which avenue to pursue. Land development sounds good but seems difficult to get into. And I’m not sure I want to be a landlord either. They all have the good and bad points.
I don’t invest. I work with investors in my local market as a Realtor and I work on a national level as a lender/broker.
I was reading the posts about Partners…
I am not in the situation of the person that started this discussion because I have no money, bad credit but a lot of ambition!!!
Do i need to have a partner to go ahead and get started, as far as immediate money? If so, how would I go about asking them and presenting them with the benefits of each deal.
I guess what I am asking is … How do I ask a friend of about 1 year to be a partner?