The real estate market is constantly changing, making it necessary to implement new or modified strategies of investing. This is one reason that new, inexperienced real estate investors should be very cautious. A real estate partnership or mentoring program is a great way to learn the ropes while making a profit. Joining a real estate investing association is a good way to meet people who are already successful in the field. Begin your real estate investing career with education; find a good mentor who offers real estate partnership programs.
What should you look for in a real estate partner or mentor?
The first and most important issue is finding someone who you can work well with; someone who shares some of your interests and goals in succeeding in real estate investing. Your first real estate partnership should be worked with someone who will also be a good mentor; someone with years of active experience and one who is successful. Meet as many real estate investors as you can; talk to them about what they are doing and how it is working for them. Many experienced investors are looking for partners; some are looking for new people to mentor.
Trust is always important with a partnership; be sure to choose someone who you feel will be honest with you and provide good advice and training. It's easy to find real estate investors, partners and mentors, but you also must know the many people who service the investors. You will need the services of a mortgage lender, title company, insurance agent, and possibly a real estate attorney or accountant, among many others. Successful real estate investors have relationships with all the key people necessary to conduct their business.
An experienced mentor or real estate partner will know how to analyze a deal to structure it for success. He will be able to show you deals he has worked on in the past; he should be able to show consistent profits, using a variety of exit strategies. Some deals are very profitable using short term transactions like wholesaling, where you buy the property very cheap and sell it quickly for a profit. Others are better when held for a time, for cash flow, as with a land contract or lease option. Ask the person you are considering working with if they have experience with seller financing as this is becoming the way to invest in today's market.
What are you looking for in a real estate partnership?
Once you find your mentor, you discuss the real estate partnership. So, what are you looking for in the partnership? How much do you want to be involved in different areas, like financial investment, management responsibilities, and other requirements? Do you want to be a silent partner or a very active partner? Are you looking to invest in commercial or residential real estate? Do you want to hold real estate for cash value; buy, fix and sell; or is there another niche in today's real estate market to go into?
Once you worked out the financial and work responsibilities, discuss the profit split and how and when you will be paid. When will you begin to see profit? How much do you invest now? What are the risks?
Another issue is liability exposure. You will want to be sure your personal assets are protected. How will you set up your partnership? These are important issues to address when forming your real estate partnership.
A good mentor will make sure you understand all the important issues before you begin investing. He will explain how the partnership will be set up, what your financial investment will be and your degree of involvement. He will also cover the profit split and explain the financial risks and liability risk of each deal.
A lot of people would be afraid to begin investing in real estate today; however, the experienced real estate investor understands that this is an opportune time to buy real estate. The increase in foreclosures and houses for sale, coupled with a decline in sales, means the prices will be very low. Values are declining; sellers are motivated; this is a recipe for negotiating a great buy on foreclosed homes, pre-foreclosures and occupied homes.
If you're very new at the game, you will want to educate yourself and find a good mentor who will work deals with you in a partnership. Join your local real estate investors association, attend workshops and meet other people who have been successful investing in real estate. Get to know the investors in your area who share your interests and find a good person to work your first real estate transactions with. - 16069
What should you look for in a real estate partner or mentor?
The first and most important issue is finding someone who you can work well with; someone who shares some of your interests and goals in succeeding in real estate investing. Your first real estate partnership should be worked with someone who will also be a good mentor; someone with years of active experience and one who is successful. Meet as many real estate investors as you can; talk to them about what they are doing and how it is working for them. Many experienced investors are looking for partners; some are looking for new people to mentor.
Trust is always important with a partnership; be sure to choose someone who you feel will be honest with you and provide good advice and training. It's easy to find real estate investors, partners and mentors, but you also must know the many people who service the investors. You will need the services of a mortgage lender, title company, insurance agent, and possibly a real estate attorney or accountant, among many others. Successful real estate investors have relationships with all the key people necessary to conduct their business.
An experienced mentor or real estate partner will know how to analyze a deal to structure it for success. He will be able to show you deals he has worked on in the past; he should be able to show consistent profits, using a variety of exit strategies. Some deals are very profitable using short term transactions like wholesaling, where you buy the property very cheap and sell it quickly for a profit. Others are better when held for a time, for cash flow, as with a land contract or lease option. Ask the person you are considering working with if they have experience with seller financing as this is becoming the way to invest in today's market.
What are you looking for in a real estate partnership?
Once you find your mentor, you discuss the real estate partnership. So, what are you looking for in the partnership? How much do you want to be involved in different areas, like financial investment, management responsibilities, and other requirements? Do you want to be a silent partner or a very active partner? Are you looking to invest in commercial or residential real estate? Do you want to hold real estate for cash value; buy, fix and sell; or is there another niche in today's real estate market to go into?
Once you worked out the financial and work responsibilities, discuss the profit split and how and when you will be paid. When will you begin to see profit? How much do you invest now? What are the risks?
Another issue is liability exposure. You will want to be sure your personal assets are protected. How will you set up your partnership? These are important issues to address when forming your real estate partnership.
A good mentor will make sure you understand all the important issues before you begin investing. He will explain how the partnership will be set up, what your financial investment will be and your degree of involvement. He will also cover the profit split and explain the financial risks and liability risk of each deal.
A lot of people would be afraid to begin investing in real estate today; however, the experienced real estate investor understands that this is an opportune time to buy real estate. The increase in foreclosures and houses for sale, coupled with a decline in sales, means the prices will be very low. Values are declining; sellers are motivated; this is a recipe for negotiating a great buy on foreclosed homes, pre-foreclosures and occupied homes.
If you're very new at the game, you will want to educate yourself and find a good mentor who will work deals with you in a partnership. Join your local real estate investors association, attend workshops and meet other people who have been successful investing in real estate. Get to know the investors in your area who share your interests and find a good person to work your first real estate transactions with. - 16069
About the Author:
This article was written by Rob J. Nani, a real estate investor with over 18 years active experience. Rob mentors new real estate investors as he teaches them how to work with today's according to our current economic climate. A good real estate partnership will enable you to begin real estate investing while increasing your chances of success.
