Is it better to go solo or to partner with others when you’re starting out in turnkey real estate investing? Why?
Jerome Myers, Founder and Chief Inspiration Officer of DreamCatchers and The Myers Development Group. Find him at jeromemyers.co.
Go Solo for Full Control
It’s better to build your turnkey real estate investing company solo because it gives you more control of the company. Hiring a coach or mentor will give you the thought partner most people are looking for in a partner while allowing them to keep the soon-to-be valuable equity of their enterprise. Partnerships have a pretty high “failure” rate so building a solo business is the safest bet for protecting all your hard work.
Partner to Take Advantage of Diverse Talents
You should partner with at least one other investor. There are several solid reasons. Two heads are better than one, and for more reasons than noticing an error or typo. If you have the funds, find someone who knows the property and the community. If you find a solid investment property, partner with someone that has the funds and/or the local experience to carry out the project.
As another example, I know of a situation where an investor partnered with a carpenter so they could get extensive woodwork done to rehab the house for thousands of dollars less and increase the profit margin.
Pros and Cons to Partnering and Solo Investing
There are pros and cons to both situations. Going solo means you take on the full brunt of the responsibility for the loans, investors, workload, you name it. But you also reap all of the rewards and have complete control of the decisions.
When you start a business venture with partners, you will not have the same amount of control, and the rewards will be divided. But, you will have more brainpower for idea generation, you will likely have more money to invest, and you will be able to divide responsibilities so the workload is a bit lighter.
The Right Partner Speeds Up Progress
I think that partnering up to start investing in turnkey real estate will accelerate your progress far beyond trying to figure it all out yourself. Without a doubt, you will find more success much faster by aligning yourself with the right investment partner. However, you'll want to make sure that you spend the time talking to many different potential partners to find the perfect person who brings different skills and experiences to the table.
Start with a Partner
When you first start investing in turnkey rental you should start with a partner if you lack the knowledge or capital to start buying properties. When two people come together in real estate, both parties should be an asset to each other.
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