by Theresa Bradley-Banta

There’s a lot of talk around the Internet and at investment boot camps about how you can buy a multifamily property or apartment building with none of your own money. Most of the prevailing ideas are a stretch—if not outright hype to sell educational programs.

If you’re investing in multifamily real estate you’re not likely to personally fund the entire transaction. In all likelihood you’ll finance part of the investment property through a bank or lender and you’ll turn to investment partners to help fund your:

  • Down payment
  • Closing costs
  • Paid research
  • Inspections
  • Reserve funds
  • Immediate renovation expenses

Chances are pretty good your real estate investment partners will be your friends and family members. Maintaining good relationships can go a long way to preserving your sanity.

Do you want happy partners?

Top 5 Things Your Real Estate Investment Partners Love to Hear

 

 “I’ve got money in the deal”

There’s no better way to assure your investors and partners that you intend to make a real estate project or deal succeed than to let them know you have “skin in the game.” If you do not have money in the deal, you will of course be investing a great deal of time. Be ready to discuss this with your investors or partners.
 

“I’ve done this type of real estate investment before”

Your partners want to know your track record and history in earlier or similar real estate investment deals. They want to know that your previous partners and investors realized the returns you promised them. If you do not have an investing history, you must have team that has experience.
 

“Here’s your quarterly update”

The number one complaint of investors is they never hear from the business deal maker after they’ve put their money in the deal. Do you want happy investors? Communicate with your partners on a regular schedule even if you do not have much in the way of updates. Your business investors and partners want to hear from you.
 

“I’m proud to have you as an investment partner”

Let your business partners and investors know you appreciate their business acumen and their trust in you.
 

“Here’s your check”

Need I say more?
 

A last word about investing with partners

The phrase “under promise and over deliver” could not be more applicable than when you are responsible for the money, assets and trust of your partners.

The best way to approach a deal is to ask yourself, “What type of return would make my partners happy?” Once you know the answer to that question you can decide if there is enough left over for you to make the deal worth your time.

Don’t make the mistake of thinking about you first, partners second. If a deal is too skinny to satisfy investment partners with a certain element of surety don’t do the deal.

Related Articles:

 

When Do You Really Need an Investment Partner?

Raising Money for Your Real Estate Deals

The Best Way to Build Your Multifamily Real Estate Investing Team

***

The following two tabs change content below.
Theresa Bradley-Banta writes about investing in real estate while avoiding the pitfalls that plague many new investors. She is a 2017 PropTech Top 100 Influencer and winner of 14 American and International real estate awards for her website and real estate investing programs. As featured on: The Equifax Finance Blog, AOL’s Daily Finance, Scotsman Guide, The Best Real Estate Investing Advice Ever Show, Stevie Awards Blog, Rental Housing Journal, and Investors Beat among others.

You’ll Love This.

Our free Real Estate Investing Guide, free Multifamily Investor Resources plus investing ideas, trends and tips.

 

All at your fingertips.

You have Successfully Subscribed!