Investor Life Interiew with Cory and Tiffany Young
What Money Partners are looking for in A Working Partner - What makes them say Yes?
Generally…
- Money Partner - Working Partner
- Money Partner is looking for two things:
1. Will I get my capital back - most important?
2. Will I get some kind of return on my capital?
- Three things a Capital Partner is looking for for a terrific investment:
1. Highly controlled
2. Low risk
3. Great return
- Three parts to any real estate or business transaction - Credit to Stefan Aarnio:
- Money - Capital Partner
- People - Working Partner - 80% Importance weighting
- Deal - Working Partner - 20% Importance weighting
(All three components must be firmly in place for a successful project.)
- The decision to invest from a money partner all comes from two things:
-Trust and Confidence
Can I trust and have confidence in the People?
Can I trust and have confidence in the Deal?
People - Trust and Confidence - Marriage
- Does the person have a servant attitude towards others? Is it about them or you?
This goes both ways for the working and the money partner.
- The most important questions to ask yourself:
Do you like the person?
Can you learn from the person?
Are their strengths your weaknesses?
Do they compliment you?
How do you feel they will resolve conflicts with you?
How much experience do they have in the proposal they are presenting?
How many deals have they done?
What’s their track record on their deals? Will they tell you about the bad ones?
Are they consistent in what they invest in?
What reputation do they have in the real estate community?
What reputation do they have in what they are proposing? Are they perceived as experts in their area?
Could they provide references if you asked them?
What team of people surround them to care for the project? (mentors, lawyers, coaches, property management, mort. brokers, rolodex of trades)
Where are they being educated? What do they study to become an expert?
How well organized are they?
Do they present in a professional way?
Can you feel free to ask them “Help me understand?“ questions?
Do they have great systems in place for management and reporting?
Will they do a great job of communicating the happenings, progress, and challenges of the project?
Does the working partner have well laid out goals for the project? Are they written, communicated, and achievable?
Deal - Trust and Confidence
Do I understand the deal? Is it easy to understand?
Do I have a high level of control in the deal?
Could I take over the deal if need be?
Is this something I have experience with?
Does the business model for the deal make sense?
Will the deal provide cash flow first? pay down equity second? capital gain third?
Is there any possibility that I might have to add more capital down the road?
Can this deal be repeated if it is merited?
How solid is the exit strategy for the deal? Are there clear timelines?
What potential challenges or risks are associated with the deal?
Is the deal located in an area where the fundamentals of real estate investing make sense?
Would I offer this deal to people I deeply care about?
What does my gut tell me about this deal?
Kind Regards,
John Heeney
Glenroe Lending
“We build LEGACY to create TRANQUILITY”
john@glenroelending.ca
519 808 7370
