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R AISING M ONEY

vestors like the feeling of security that they feel when they know that
the originator of the transaction has a monetary stake in the deal.

Guidelines for Real Estate Investing Partnerships

How do you get started forming a real estate investing partnership?
Find a lawyer or a developer who has done something similar and
pick their brains. Explain that you’re a total novice and you know
they’re successful in real estate and your education will begin. Here
are some basic guidelines for forming a partnership:

• If you are the project manager it is imperative that you have
total control over all aspects of the project other than financ-
ing arrangements and sale of the project. Give as little detailed
information as you can to satisfy your money partners. In-
vestors can be intimidated by too much information, which
they don’t have the ability or desire to interpret. Don’t get into
details unless they’re specifically requested. Unless you have
very knowledgeable investors, only give them whatever it is in
the way of information that will make them feel secure in their
participation in a good investment. Give them the positives in
glowing terms, and play down the negatives.
•Always have an appropriate method of periodic communica-
tion. It should be consistent and on time, such as bimonthly or
twice yearly. If you promise a report every 90 days, make sure
you keep your promise. Don’t wait until your investors ask for
it. Keep all of your partners in the loop especially if you have
some good news to report.
•Make sure investors know all their obligations, such as periodic
cash calls, if your project runs into problems. You don’t want
them to be surprised when you ask for more money.

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