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?

You want to find someone that you are able to communicate with and relate well to; someone who agrees with you on important investing issues. As with any type of investment, the greater the risk, the greater the return; therefore, choose someone who takes the same degree of risk that you are comfortable with. Your first real estate partnership should be with someone who will also act as a mentor. Meet as many people in the real estate investing area as you can; network and learn from them. You will find that many experienced real estate investors are looking for partners; some are looking for people to train as partners.

Take your time and find a partner or mentor who is open and honest; one you can trust to steer you in the right direction. Finding real estate investors to work with is the easy part. Once you get started, you will find that there are a lot of people you need to know, including investors, brokers, property managers, rehab contractors, title companies, mortgage lenders, insurance providers and anyone who services real estate investors. A successful investor has all the necessary connections.

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 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.

The ideal person to work with as a real estate mentor is one who will explain all the important issues so that you have a clear understanding. You should be comfortable with your financial investment, personal responsibility and the amount of profit made from the 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.