Ashley:
Most rookies sit on the sidelines because of a single number that doesn’t actually apply to them. They think they need $50,000 in cash before they can buy their first rental and that is just not true.

Tony:
Today we’re walking you through three real funding paths that have actually worked for past real estate rookie guests and none of them require the typical 20% down. None of them require even house hacking. And by the end of this episode, you’ll know which path fits where you are right now.

Ashley:
This is The Real Estate Rookie Podcast. I’m Ashley Kehr.

Tony:
And I’m Tony J. Robinson. And with that, let’s jump into the different ways to fund your deal. So let’s just start with the fundamentals, right? Because hard money is one of the terms that a lot of rookies have heard, but few can actually define. So in plain English, let’s just talk about what is a hard money loan and how is it different from a conventional bank loan? So one of the biggest things guys is that hard money loans are typically built for real estate investors. These are built for properties that need to be renovated, properties that maybe wouldn’t qualify for traditional financing. I bought a property once that had a big hole in the roof. I’ve purchased a property that didn’t have a septic tank. Properties that in any normal loan situation probably would not get approved. And that’s where something like hard money comes into play.
So these are businesses that exist to lend money to real estate investors, to purchase properties that need oftentimes heavy renovations, which will then get either quickly sold or refinance on the backend. And the way that these hard money lenders make money is they typically charge you higher interest. So whatever the prevailing interest rates are, you can assume that it’s going to be a few percentage points higher. And then they’ll also charge you points, which are basically fees for giving you this loan. And that’s how they generate money. So that’s the difference between traditional financing and a hard money loan. Now I’ve actually never used hard money. All of our renovations we’ve done with private money actually. Ashley, I know you’ve used some hard money loans in the past. How has your experience been using that type of debt?

Ashley:
Tony, I just got back from vacation and here you are hitting me with some trauma that I had with hard money. Here I am feeling all relaxed from my vacation and now we have to go and dive into this, our first episode back. I have used hard money. I used it one time. I actually got a line of credit from a hard money lender. So with this line of credit, you paid points based on how much you were going to get for the line of credit and then you would… And it wouldn’t work as easily as like a HELOC does where basically you just pull money off the line of credit whenever you want and use it for whatever. With this, you actually had to have every property approved before they would actually fund you off the line of credit. So basically it was just you were already approved for X amount of money.
I think mine was maybe half a million, one million. I can’t remember for sure. It was probably four or five years ago.
So I could use that within an allotted amount for the purchase price and for the rehab of the property. So I had three properties that I was going to use on this. I ended up only using it for two of them because those were such awful experiences. I ended up using my own cash for the third property because I just did not want to have to deal with it. So a lot of lessons learned with hard money as to… I didn’t ask enough questions upfront. I didn’t understand all of the fees that came along with it and I didn’t understand the funding process. So I didn’t clearly understand what needed to be done to actually get funded on a property, what information they needed from me and how that all worked. So if you are looking into hard money, I think really understand what their process is, what their fees are, but also working with a hard money lender where you have on point of contact.
Through every step, this would change hands and there would be a different point of contact. I never had just one customer service agent or one lender that I could always go to and ask questions for and talk to. It was always passed off and there was so much miscommunication throughout the whole process that we ended up… It was a Friday we were supposed to close on one of the loans and we didn’t even close because the person that was working on finalizing the loan didn’t understand title in New York and literally like said like, “This is different than anything I’ve ever done.” And we had to delay closing till the next week until the hard money lender actually hired a title attorney to come in and basically reiterate what my attorney was saying was correct and then we could finally close. So asking vetting, that was my awful traumatic experience with hard money, but there are tons of people who know better than me to ask the right questions or to use a different company and they have had great success with it.

Tony:
Yeah. So I think those are some important things to call out, Ash, and we’ll talk a little bit more about some other risks associated with hard money. But now that rookies know what it is, I think for a lot of people listening, hard money might feel like a tool that’s really only for like the pro real estate investors. So let’s just break down. So let’s just break down. When does it actually make sense for someone on their own to use hard money for maybe their first deal? So there’s a few things that come to mind for me. So the first is that the property just simply won’t appraise. And that’s what I was talking about before where it’s maybe too distressed that there’s a litle bit too much work that needs to be done. Sometimes if properties are too inexpensive, sometimes banks won’t lend on a property that’s super cheap or if the purchase price relative to the amount of rehab, if you’re buying a property for 20,000 but it needs $80,000 in renovations, a lot of banks won’t touch those kind of products as well.
So when the property won’t appraise or when there’s not enough margin on the deal, speed is another big one where hard money is incredibly useful. A traditional closing experience is 30 days. If you’re in New York, it could be longer than that, could be two years, but if you want speed in closing, a lot of times hard money can be one of those levers you can pull because maybe hard money lender can close in seven days and that gives you the ability to have a stronger offer on a deal and banks are just typically a lot slower. Another scenario where hard money helps is that maybe you have the deal but you don’t have the credit history or maybe like the W2 income to get approved for a conventional loan. Maybe your debt to income ratio isn’t healthy enough, you’ve got your own primary residence and student loan debt and whatever it may be, but you’ve got a really, really great deal.
Well, the hard money lenders are to an extent going to look at your credit profile, but a lot of what they’re underwriting is a deal itself. And as long as you don’t have like a bunch of foreclosures or like bankruptcies or like a 400 credit score, I think a lot of hard money lenders, I don’t know, Ash, what you’ve seen, but they’re like, you’ve got to have like, I don’t know, like a six something credit score I think I’ve seen from a lot of hard money lenders, but you have more flexibility when it comes to getting approved on the credit side. And then the biggest, I think most common usage for hard money loans is if you’re flipping or burning. So if you plan to bury a property or flip it, you buy with hard money, you use those funds to renovate it and you’re selling or refinancing on the back end.
So even if you’re a rookie investor, those use cases all still make a ton of sense to try and leverage hard money to get that deal done.

Ashley:
I think too, really like looking at your deal as to if the deal is a good fit for hard money too. We’ve seen properties where, or even just investors where they have a property and they actually can take it to a small local bank where, and Tony did this for his first deal, where they will actually lend you 100% of the purchase price, 100% of the rehab. And right now you can still find those at some bank. So we’re close to that, maybe it’s not 100%, but 90% just because you’re buying a property so under market value that it’s already appraising for the amount of money that you need to actually do this. So they’re willing to lend you more on it than just what you’re purchasing it for. So I think not only looking at what options you have personally, but looking at the property too and maybe even though you are doing a BER or you are doing a flip as to don’t think hard money is your only option, like if you are getting a really, really good deal, make sure you’re looking at some of the other conventional ways I’ll say as to like using a bank too.
And then some deals are just going to be the best for a hard money lender on that property where maybe it’s a unique property where you couldn’t even get bank financing on it for X amount of reason and that’s where going with a hard money lender would be better.

Tony:
And let’s talk about a previous guest, Elizabeth Esplin. She was on the show last year and she found a deal that was a phenomenal deal. She ended up profiting over $200,000 on this deal, but the challenge was that no one wanted to lend on this deal because it was super cheap and needed heavy rehab and she had never done this before. But in her own words, she told u she said, no one wanted to lend to me because the price was so low and her ARV was so high that people thought that she was stupid or didn’t know her numbers. Those were her exact words and it was her first deal, right? There were all these things working against her. So she just Googled hard money lenders in her area and she ended up finding a bank that financed 100% of the purchase price plus the rehab.
Now she saw some costs associated with it, but again, she ended up walking away with $200,000 from this deal because she found the right hard money lender to work with. So it is an option. It is a possibility.

Ashley:
Tony, what’s another word to Google besides hard money lender? Because typically you don’t see like a sign that says like, Robinson hard money lending. What are some other indicators to know that this type of lender isn’t just like a broker that pushes you out to different mortgage companies, but is actually a true hard money lender?

Tony:
That’s a good question. I mean, I guess if I were starting from scratch, I would maybe search real estate funding. I might search real estate construction lender, things of that sort, right?

Ashley:
Burr lender, because most of hard money lenders know what a BER is. Yeah.

Tony:
Fix and flip lender, that’s probably one of the best terms. Yeah, fix and flip lender. Because sometimes even if you Google construction loans, you’ll get a lot of like small local credit unions that are just like lending money to people to buy their own primary residence, which is a different loan product. But fix and flip lender might be a good one as well. And honestly, like ads, if you just search the bigger pockets forms, you’ll see so many different people talking about lenders that they’ve used and big and small ones, national, local, regional, all those things. So there’s a lot of different places to go aside from Google.

Ashley:
The lender finder too, biggerpockets.com/lenderfinder too.

Tony:
So Ashley, you talked a little bit already about some of the challenges that come along with hard money because it’s not free money, right? It’s not necessarily easy. There are real risks that Ricky’s should think about before they sign up. So you talked about a few already, but I guess maybe just a couple others to highlighter that rates are oftentimes higher than what conventional loans will be. So you’ve got to make sure that you’re understanding the interest rate structure as you get into these deals. I know a big one that kind of catches people off guard is that even if they go to a hard money lender and that lender says, “Hey, we’ll fund 80% of your costs on this project.” And you’re like, “Okay, cool. I only need to come up 20% of the cost as a down payment, but what they don’t tell you is that you still have to front the initial cost for the construction.
And so you’ve got to have not only that initial 20% but enough to front whatever costs are accrued until they reimburse you on the backend.” So a lot of sometimes our money lenders aren’t going to give you the money upfront, the work needs to be performed, the vendors need to get paid and then you show them proof and then they reimburse you. So having some, I think some additional slush money or some working capital is important as well and that’s one that folks sometimes overlook. And then for Ricky investors, one of the most common, I won’t say traps, like one of the most common situations they find themselves in is that their first rehab goes over budget and takes much longer than they anticipated, like much longer and more money. And if you don’t account for those things correctly when you’re using hard money, it can get very expensive.
A lot of times hard money lenders will charge you additional fees if you go beyond your initial term and now that that changes the underwriting on your deal, right? If you go from a 10% and now they want to charge an additional fee of one to 2% of your loan or maybe your interest rate increases or whatever it may be, I think just making sure that you’re giving yourself enough time on that first deal and however much time you think you need and however much budget you think you need increase both of those to give yourself some breathing room.

Ashley:
One thing you’ll also notice too is that you may need to do a personal guarantee, which a lot of times if you’re going to a bank, you’re having to do this anyways, even if your property is owned in an LLC is you’re going to have to also sign personally, you’ll have to sign on behalf of the LLC and you’ll have to sign personally. There are commercial loans that you can get where you give no personal guarantee and those tend to be more expensive as in your interest rate is usually higher because now the bank has more risk because not only can they, they can’t go after you personally for some of your personal assets if you don’t signal the personal guarantee. So make sure that’s clear upfront and if that’s something you want to do if you’re willing to take that risk. After the break, what if even a hard money lender won’t touch your deal?
Because that happens too, small loans, cheap properties, weird asset types. There’s a path that doesn’t involve any traditional lender at all and one of our recent guests used it to buy property number one with terms she negotiated directly with the seller. We’ll be right back. Okay. We just walked through how to bring in a third party lender when traditional banks won’t work. Now let’s talk about a path that doesn’t require any traditional lender at all. This is called seller financing and most rookies have heard the term but couldn’t tell you exactly how it works. So in plain English, let’s talk about what seller financing is. So basically this is when the seller of the property becomes the bank and I’ll say outright disclaimer that this cannot happen with every single property and you’ll understand why when we go through, but not every property can have seller financing on it.
So seller financing is you are purchasing a property. So we’re going to use me and Tony as an example. Tony has a property he is selling and I want to purchase it. Normally you would think you would go to the bank or you’d go to a hard money lender we just learned about and you get the money from them. You take that money and I’d give it to Tony and then I would make payments to the bank. Tony has his lump of money and he’s off buying his cottage in Italy. Okay. But with seller financing, you don’t have the bank as a part of it. There’s no bank involved in most cases. What you’re doing is Tony owns this house free and clear. So instead of him getting a lump sum of money from me, say I’m purchasing it for $100,000, we’re going to do seller financing where I’m going to make monthly payments to him.
He doesn’t get a lump sum unless I’m putting down a down payment, he’ll get that and I am just going to pay him and he is going to collect that money. Typically there is an interest rate involved, so he’s making interest on that money and it is technically instead of me using a bank to pay him, I am just paying him directly in monthly installments and you may be thinking, why would somebody even want to do that, which we will talk about later as to the benefits of this, but that’s seller financing where the person holds the mortgage, they become the bank and you just make payments directly to them. Some of them have balloon options where maybe you’re only making payments for four years and then you owe them the balance of it. The nice thing about seller financing is you can set this up however you want it to.
The terms can be negotiated however you and the seller want to figure them out. You’re not tied to the constraints of a bank.

Tony:
Yeah. I think that’s one of the biggest benefits of seller financing is that there’s a lot of flexibility, but I think the question that rookies might be thinking is like, well, where are all these sellers offering seller financing, right? Because as I’m scrolling through Zillow and Redfin, I’m not seeing these. And it’s true. In some instances you will see like in the listing where the seller will just flat out say like, “Hey, they’ll entertain seller financing.” But a lot of times they’re not just promoting that, but that doesn’t mean that there aren’t sellers who wouldn’t be open to it. So what is the profile of someone who actually would entertain seller financing? First is someone who maybe doesn’t need or want the entire lump sum all at once. And there are different reasons that folks might want that. It could be because they don’t want the tax implications, could be because they just want that money stretched out over a few months or a few years if it actually ends up being more capital, but there are some folks who don’t want the big capital event to happen all at one time.
Sometimes it’s because maybe the properties won’t appraise, right? If I agree to sell Ashley a property and let’s say that I want a million dollars for it, but the property’s only worth 800, but Ashley knows that, hey, if she gets it under contract at a million with the right terms, the cash flow is going to be significant and it’s a great return for her. Well, maybe she’s willing to accept some of this negative equity if I can give her the right terms that she’s looking for. And I’m happy to give her seller financing if it means I can get the purchase price that I want and actually extract more value out of this deal. So we’re both kind of giving a little bit on both ends, but I’ve seen it happen in that way where it’s because the property won’t appraise. Sometimes it could be, again, like tax related.
If I bought a property 30 years ago and I go to sell it today, that could be a pretty big taxable event for me. But if I spread those payments out now over the next 10 or 15 years, when now I’m only paying taxes on those small payments as opposed to this one big lump sum and it’s a little bit easier for me to execute from a tax mitigation perspective. A lot of times, guys, when it comes to getting sellers to be open to seller financing, it’s really just a question of like, “Hey, would you be open to hearing more about how we can put some terms together for this deal to give you what it is you’re looking for? ” And the better we understand the seller’s motivations, I think the easier it is to put together a package of seller financing that speaks to those motivations.

Ashley:
So one recent episode we did was with Kimber and she broke down seller financing better than most people we’ve actually had on the show. So he exact deal, we’re going to go through it real quick, the down payment, the terms of balloon. So a rookie can see what one of these deals actually looks like in practice. So she actually did a smaller down payment than a conventional loaner would acquire. For investment properties, a lot of times this can be up to 25% down, sometimes 20%, but usually not less than that, especially for an investment property. Her structure was a five-year balloon. So that means within five years she needs to either save up the cash to pay off the balance, she needs to go and refinance with the bank to pay the seller of the property up or she actually needs to sell the property to get the funds to pay off that loan to the seller.
And I do remember this was one of the things she had said was it’s super beneficial because the terms are a little bit more negotiable. And that’s exactly what Tony had said too is there’s so much flexibility in how you build this out to make it work for you. So I have a property right now where I did seller financing and it’s seller financing for four years and within that four year period I have my timeframe of renovating the property so that when it gets to be year three, I’m going to start talking to banks and getting it lined up to do my refinance, get my appraisal and make sure that is worth a lot more money than what I bought it for so I can pay off my seller financing.

Tony:
Yeah. And you touched on Ashley, I think like the flexibility of seller financing and to your point, there are a few different levers that we can pull when we put together a seller finance proposal to a seller. First is down payment, right? So what percentage of the purchase price are we offering up to the seller at the beginning? And believe it or not, I mean, I’ve definitely met folks who have gotten seller finance deals with zero down. The sellers didn’t want any initial cash upfront, or at least the buyers were able to negotiate no initial cash upfront, but down payment is one lever that you can pull. The actual interest rate itself, how much are you paying in interest to this seller? And this is one of those things guys where it’s like you can slide the interest rate up or down and you can also slide the purchase price up or down.
Say that maybe a seller’s like really fixated on getting a certain interest rate back. Okay, hey, I’ll give you this interest rate, but then we’re going to pull down the purchase price to X. And now it gives me a litle bit more flexibility as the buyer, but the interest rate is one lever that you can pull. To Ashley’s point, the balloon period, like when do you need to sell or refinance this property? We have a seller finance note on our hotel and it was a seven year term. So we have seven years to stabilize the property and then we can either sell or refinance that property to pay off the note. And then the amortization schedules, how long are we stretching those payments out? So like if we were to pay it off in full, how much time will we need? And we have a 30 year amortization on our note again with that seven year balloon payment.
Those are all different levers that you can pull as you’re thinking about your seller finance note. And again, depending on what’s important to the seller, you can prioritize certain ones of those to really give the seller what it is that they’re asking for while hopefully adjusting the other so it aligns more closely to a deal that makes sense for you.

Ashley:
Now there are some risks to doing seller financing like any financing. And so one thing to definitely look at is to figure out everything clearly beforehand. With a bank, it’s pretty standard how you make your payment, how they send you a statement every month to show you what your balance is, things like that. So in any seller financing I do, I’m putting it clearly in writing as many things as possible, including how my payment will be made and usually I do is like ACH. So I know upfront they will accept ACH payments and that’s how they will expect to receive it and there’s no other expectation of how they will receive my payment every month. Then at the end of the year, they are sending me a balance as to at the year end, how much interest did I pay, what my balance is on my loan.
And I do that because I want to know if there’s some discrepancy so we can take care of it until it’s been four or five years into this loan and all of a sudden there’s a balloon payment and they say, “Well, no, that’s not what I have and it doesn’t match up.” So think about a lot of those things that you don’t have the security blanket of it being a well oiled machine as a bank. And not that a bank is, I just had an insurance payment that wasn’t made by my bank that has escrow. So the banks can still definitely make mistakes, but I would just make sure the process of how you are going to have that relationship is laid out very clearly. All

Tony:
Right. Coming up, what if you don’t have the capital and you can’t find a deal that fits the first two paths? The third option is the one most rookies miss completely and it’s the path that lets you build wealth with people who already have what you don’t and we’ll get right into it after this quick break. All right. We’ve covered how to find money outside of yourself, hard money lenders, seller financing. Now let’s talk about how to find people outside of yourself because a lot of rookies, the missing piece isn’t the loan, it’s simply a capital partner. So the third and final path is simply leveraging partnerships. Now, if you don’t know, Ashley and I actually co-authored a book called Real Estate Partnerships where we both documented and taught on our own experiences on leveraging partnerships to build our portfolios and both of us give the power of partnerships a lot of credit and the ability that we had to build our portfolio.
So let’s start here, right? I mean, there is a reason that partnerships are talked about so much in real estate, but look, they’re not always the right move. So I think the first thing is let’s discuss when a partnership genuinely is the best path forward Ricky and maybe when it’s the wrong call. So it’s the right move. If you have the deal and you have the time but you don’t have the capital because that means that you can take, you’ve done all the hard work of finding the deal, you’ve got the time to manage that deal, whether it’s a bur or a flip, a midterm or long term, whatever it may be, you’ve got the time to manage that deal, but you simply don’t have the capital to take it down. Now you’re just approaching someone and saying, look at this amazing deal I have, I’m looking to partner with someone to take it down, are you in or are you out?
That’s a very clear benefit driven value prop. It’s the right move if the deal is bigger than maybe you take on solo. Say it’s maybe like a 12 unit and the biggest you’ve done is like a two family and you want to partner with someone who’s also done maybe like a four family and together like, okay, between your four and my duplex, we feel like maybe we can manage this whole thing together. So if you’re partnering to take on deals that are bigger, it’s the right move if you want to learn from someone with more experience and an equity for mentorship actually makes sense. Ashley, you talk about the liquor store or the first big renovation that you did where you partnered with folks to bring in their expertise in exchange they got some equity. So I think those are the times when it’s the right move to partner.
Ashley, what about the wrong time? When do you feel like it might be the wrong time to partner with someone?

Ashley:
Yeah. So that can be because you’re just scared and I’ll be completely honest, that was one of the reasons I wanted a partner was first of all, I didn’t have the capital so there was a right reason there, but also I was scared and I thought that I needed to have a partner to be able to do a deal. And if you have all the other key missing things, you have some time, you have capital or acces to capital, you’ve done your research, you have somewhat of a knowledge base or experience, then you probably don’t need a partner. And if you have that and you’re only acting on fear of getting a partner, then that probably isn’t the right move for you.
If you are relying on a partner to do a lot of the work to handle everything and you just want to be passive and you don’t want to do anything, then maybe going and buying a rental property and burring it or whatever isn’t the right move. So I think before you even decide if you need a partner, you really need to figure out what your why is, what strategy you actually want to do. Don’t just get into a partnership because you want a good deal Make sure it’s actually a strategy, an asset class, a workload, whatever it may be that you actually want to take on and you want to do. So there’s so much work you have to do for yourself as to really understanding what kind of partnership would be clear. So the wrong move is jumping into a partnership only because you think this person would be a great partner or because you think this deal would make a great deal.
Those things on their own can’t stand alone. You have to figure out what’s going to work best for you before you jump into anything. So that could definitely be a wrong move there.

Tony:
Let’s talk about some of our previous rookie guests and how they’ve leveraged partnerships. So we had Anthony on the show a while back and he has a portfolio of nine units across seven different properties and he structured them in two different ways, which is what kind of makes it so useful here. So five of the nine units are owned solo by him and his wife and then four of the nine units are owned in partnership with his brother-in-law. So the key insight here is that he didn’t make every deal a partnership, he picked which ones based on the capital required to actually take those deals down. And he actually didn’t partner with family again. It was his brother-in-law, which I think was an easier path to find that partner, but he still structured it like you would in any other partnership to make sure that they both had clarity on what that partnership looked like.
But I highlight Anthony’s story to say that you can mix and match. You don’t have to do a partnership on every deal. If you do have the means to take it down by yourself, then do that. But if you find that actually bringing someone who makes more sense, you can have a mix of both and… In your

Ashley:
Portfolio. Now, we also have Dylan’s story as an example. He had one property already, a triplex that he had house hacked, but he wanted to make a much bigger jump and go into a 12 unit. So with this, he actually found the 12 unit. He knew the math worked. He ran the numbers on the deal, but he didn’t have the capital. So he actually went to a coworker who he knew had been buying real estate for some time. And so he showed him the financials, showed him the deal and just asked, “Is this something you want to be part of? ” And the coworker said, “Yes.” And that’s how their partnership formed. So they structured that partnership for that specific deal. So this wasn’t a foreverlasting relationship that every deal we ever buy or find we have to partner together and this is how the partnership has to work.
It was a very deal specific. It wasn’t a let’s partner forever arrangement.

Tony:
Now this is the part that probably scares rookies the most, but it’s how do you actually split equity when one person brings the deal and the other person brings the money? So we just want to walk through what is actually fair and what kills these partnerships before they even close on the first deal. So I think the first big thing I want to call out is that there’s this big misconception amongst rookie investors that if they don’t have the capital that they are somehow the inferior partner in that relationship. When in reality, you guys are very much on equal footing. And honestly, if we talk about value maybe, you might even be more important because you are the one who sourced the deal. You’re the one who stayed up late at night swinging hammers at the property, or maybe you’re the one that’s screening tenants and dealing with the contractors to get the units tenant ready.
Maybe you’re the person managing the guest if it’s short-term rental, you’re babysitting the contractors if you’re flipping. There’s so much work that goes into finding the deal and managing that deal. Whereas the person who brought the capital, typically the extent of their work is maybe signing some loan docs and then wiring in some funds on the day of closing and then they get to drop all of the other thoughts and pressures from this deal away from their mind. So when you frame it up that way, you bring an incredible amount of value. The deal would not exist without the work that you did. And for all intents and purposes, the person bringing the capital is replaceable because there are a lot of people out there who have the capital, but you are the only person that has this deal. So you’ve got to just rewire the importance you have stepping into that.
But I personally think that the easiest, most straightforward way to structure it is just make it fifty fifty. If you guys go on a deal and for that very first one, say, “Hey, you’re going to bring the capital. I’m going to do the work and let’s just split it down the middle.” We’ve used a lot of different partnership structures as we built our portfolio, but for me, for a Ricky investor looking to get started, I feel like fifty fifty makes the most sense. What do you think, Ash? Is there a different model you think makes more sense for Ricky investors?

Ashley:
No, I just think the biggest piece of the device I can get from my own experience is, especially for your first deal, don’t get caught up on what’s fair. My first deal was not fair. I did way more work. I got way les benefit, but it got to me started. So I would say that don’t not do a partnership because you don’t think it’s 100% fair that you’re getting the best deal that you can and you’re getting the best return that you can. Some return is better than no return and that experience and that knowledge that you’re going to learn from doing your first deal is going to carry a lot of weight in gold. So if the only way you can do a deal is because you’re giving maybe that person a little more equity or they’re maybe getting, like my partner got paid back his capital he invested plus interest.
So maybe they are getting a better part of the deal and that may be okay. Don’t let that happen forever. Start to know your worth. I never do that deal anymore with anyone, but I would just say don’t get too caught up on the terms of that first partnership that the deal ends up going away because you can’t make it work in time or anything like that too. Well, you guys, thank you so much for listening to this episode of Real Estate Rookie. I’m Ashley. He’s Tony and we’ll see guys on the next episode.