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.
Finding and choosing a real estate partner and mentor
Meet as many people as you can; network with and learn from others who have been successful in real estate investing. As you get to know people, you will find someone who you will be able to work well with. Look for someone who shares your goals and interests, for example, if you're very conservative, then you will not want to try working with someone who takes great risks. Remember, you are looking for a mentor as well as a partner. A lot of experienced real estate investors like to work with partners; many are looking for new investors to mentor.
Of course you're looking for a partnership with someone who can be trusted and one who is successful. But there is so much more to real estate investing than just knowing the investors. There are many people you need to know, including investors, realtors, brokers, builders, property managers, home inspectors, title companies, lenders and insurance providers. A successful investor already has these resources in place.
A good real estate partner to work with is one who has had experience at handling a variety of transactions in our constantly changing market. He will have several different exit strategies he likes to use and he will know which one works best for each transaction. He should be able to show you some examples of deals he's made in the past that show profit. A good real estate partner is one who has a wealth of experience; a good mentor is one who will share their knowledge with you.
What do you expect out of a real estate partnership?
When you find your mentor, a real estate partnership will naturally form. Mentors like to work partnership deals while they show you the ropes; there's no training like hands-on training. Do you know what you are looking for in a real estate partnership? How much involvement do you want in the financial investment and management responsibilities? Are you looking to be a very active partner or one who stays behind the scenes? Are you interested in commercial or residential real estate? Are you looking to invest in rural, urban or suburban areas? What type of real estate deals are you the most interested in; wholesaling, holding for cash flow, or is there another niche in today's market, like short sales, that interest you?
You are no-doubt thinking about financial gain; you must make a good profit form the partnership, no matter what type of transactions you're working or what your degree of involvement is. Does the anticipated profit match the degree of risk in the deal? How safe is the investment?
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.
To the average person, real estate is a shaky market and one should think twice about investing in property now. The experienced real estate investor sees things in a much more positive light. There is a very high supply of bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and much more. The demand for these homes is relatively very low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.
Join a real estate investors association and meet real estate investors and property managers. See what everyone is doing and if it is working for them. Decide what you think will work for you and meet the people who have been successful doing it. If you do what the successful people are doing and begin working with a mentor, you will be on your way to financial success in real estate investing. - 16755
Finding and choosing a real estate partner and mentor
Meet as many people as you can; network with and learn from others who have been successful in real estate investing. As you get to know people, you will find someone who you will be able to work well with. Look for someone who shares your goals and interests, for example, if you're very conservative, then you will not want to try working with someone who takes great risks. Remember, you are looking for a mentor as well as a partner. A lot of experienced real estate investors like to work with partners; many are looking for new investors to mentor.
Of course you're looking for a partnership with someone who can be trusted and one who is successful. But there is so much more to real estate investing than just knowing the investors. There are many people you need to know, including investors, realtors, brokers, builders, property managers, home inspectors, title companies, lenders and insurance providers. A successful investor already has these resources in place.
A good real estate partner to work with is one who has had experience at handling a variety of transactions in our constantly changing market. He will have several different exit strategies he likes to use and he will know which one works best for each transaction. He should be able to show you some examples of deals he's made in the past that show profit. A good real estate partner is one who has a wealth of experience; a good mentor is one who will share their knowledge with you.
What do you expect out of a real estate partnership?
When you find your mentor, a real estate partnership will naturally form. Mentors like to work partnership deals while they show you the ropes; there's no training like hands-on training. Do you know what you are looking for in a real estate partnership? How much involvement do you want in the financial investment and management responsibilities? Are you looking to be a very active partner or one who stays behind the scenes? Are you interested in commercial or residential real estate? Are you looking to invest in rural, urban or suburban areas? What type of real estate deals are you the most interested in; wholesaling, holding for cash flow, or is there another niche in today's market, like short sales, that interest you?
You are no-doubt thinking about financial gain; you must make a good profit form the partnership, no matter what type of transactions you're working or what your degree of involvement is. Does the anticipated profit match the degree of risk in the deal? How safe is the investment?
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.
To the average person, real estate is a shaky market and one should think twice about investing in property now. The experienced real estate investor sees things in a much more positive light. There is a very high supply of bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and much more. The demand for these homes is relatively very low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.
Join a real estate investors association and meet real estate investors and property managers. See what everyone is doing and if it is working for them. Decide what you think will work for you and meet the people who have been successful doing it. If you do what the successful people are doing and begin working with a mentor, you will be on your way to financial success in real estate investing. - 16755
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 to work the market according to our current economic climate. A good real estate partnership will enable you to begin real estate investing and improve your chances to succeed.
