You want to get into multifamily investing and you’ve been out there looking for deals. You’re getting some traction on a couple but you realize that your lack of track record is keeping you from getting the deals under contract. You’ve raised some money but not nearly enough to do the deal yourself.
What do you do?
Your mentor advises you to partner with someone more experienced, who might be able to support you and possibly help you raise some or all of the money for the deal. This would, of course, give you only a slice of the pie (and not the whole thing) but you realize that it would also get you into your first deal. This would give you track record, and you’d be poised to do your next deal on your own.
This all sounds great, but how should you structure the deal with that potential partner?
There are 3 possible options for you to engage with a more experienced partner to do your first multifamily deal.
In this article I outline 3 ways for you to engage with a more experienced partner, and to structure the arrangement so that you get compensated fairly.