344. Navigating Real Estate Partnerships | Office Hours

Key Takeaways:

Value Creation Over Cash Flow

Focus on creating equity, not just collecting monthly rent

Potential to make more money by improving property value than through steady cash flow

Example: Tyler's land deal generated $900,000 in three years versus minimal annual cash flow

Partnerships

Partnerships can be powerful for scaling your business

Always have a clear operating agreement

Avoid 50/50 partnerships; ensure someone has decision-making control

Choose partners with complementary skills

Underwriting Strategy

Consistently analyze different property types

Learn to evaluate markets and assets systematically

Be open to various commercial real estate sectors (flex space, storage, mixed-use)

Raising Capital

Start with friends and family (506(b) offerings)

Build relationships and trust

Demonstrate expertise through consistent content and market knowledge

Investment Approach

Don't just chase cash flow

Look for opportunities to create significant value

Be willing to invest time in property improvement