In this week’s episode, The Real Deal explains that today, many young folks feel that because they have no experience, that they need a partner. The problem with that logic is that often the partner has little to no experience either. When choosing a partner in a deal, that person should have quite a bit more experience than you do.
Instead of jumping right into a partnership with someone on the same level as you, perhaps it makes more sense to educate yourself, and then make an arrangement that makes sense with a “financial friend”.
It is critical to do the right thing when you take on a financial friend, no matter what, that friend needs to be treated fairly, and must be paid, before you get paid. Don’t fall into the trap of believing that just because someone has a few dollars that they know anything about real estate investing. It is critical to set boundaries up front, and to clearly define each other’s duties and responsibilities.
Larry also discusses being “hands on” with your rehab jobs and how that can work against you. Commonly, newbie investors feel that they are actually “saving money” by doing the work themselves. The actuality is that you can negotiate that savings when you buy, instead of trying to sort it out when you sell. Larry goes on to explain his “white shorts” theory that helped him get his “hands out of the dirt” so to speak.
Have you visited the new and improved LarryHarbolt.com website? Check it out and get ready to launch your investing career today!