Thinking about teaming up with someone in real estate? A partnership can help you close bigger deals, share responsibilities, and grow your business faster. But the wrong partner? That can lead to stress, financial loss, and even lawsuits.
Andrew Newlon, a real estate investor since 2013, has built his success on smart partnerships. He has seen what works—and what leads to disaster. In this guide, we’ll break down his best tips to help you choose the right partner, avoid costly mistakes, and set yourself up for long-term success.
Why Real Estate Partnerships Matter
Andrew’s real estate investing success comes from choosing the right partnerships. He believes that the right partner can make all the difference. But before you team up with someone, it’s important to understand what makes a good partnership work.
Here are the three most important things you need to know before partnering up in real estate:
1. Rule #1: If You Don’t Align, You’ll Fail
A strong partnership starts with alignment. Andrew says that you and your partner should agree on three main things:
- Purpose: Why are you getting into real estate? Is it to build wealth, create passive income, or achieve financial freedom? Having the same purpose will keep you both moving in the same direction.
- Goals: Do you both want to flip 10 houses a year? Do you want to buy rental properties? Having clear, shared goals will help prevent disagreements.
- Core Values: Your values guide how you do business. If one partner values honesty and long-term growth while the other focuses only on quick profits, it can create conflicts. Make sure you both share the same work ethic and business morals.
When you and your partner align in these areas, it’s easier to make decisions and grow your business together.
2. Understand That Partnerships Can Be Temporary
Many people think that once they find a partner, they will work together forever. But Andrew advises looking at partnerships as strategic relationships that serve a purpose for a certain period of time.
At first, you might need a partner to help with experience, money, or extra hands on deck. But as your business grows, you may no longer need that help. It’s okay for partnerships to evolve or end when they have run their course.
Understanding this from the start can prevent hard feelings later on. It’s important to talk openly about expectations so that both partners know what to expect in the future.
3. Plan an Exit Strategy from Day One
Most people don’t like thinking about endings, but Andrew insists that having a plan for how to end a partnership is critical. A partnership is a lot like a marriage. If things don’t work out, it’s better to have a plan in place rather than deal with messy conflicts.
Before starting a partnership, sit down and discuss:
- How you will split profits and losses
- What happens if one partner wants to leave
- How you will divide business assets if you decide to part ways
“If you’re not willing to have that conversation, you’re setting yourself up for a disaster.” — Andrew Newlon
Stay Flexible and Adapt to the Market
Real estate is always changing. Andrew had to shift between wholesaling, flipping houses, and renting properties depending on market conditions. When the market was strong, he focused on flipping homes. When the market slowed down, he turned to wholesaling to maintain steady cash flow.
Being able to adjust your strategy based on the market is key to long-term success in real estate.
Balance Wholesaling and Flipping
Andrew started with wholesaling, which helped him get his foot in the door. Wholesaling requires little money upfront and can generate quick profits. However, flipping houses offered him bigger returns.
The trick is knowing when to switch between the two. Wholesaling can provide fast income while flipping can build wealth. A smart investor knows how to balance both.
Build a Strong Team
As Andrew’s business grew, he needed help. He built a team of 12 people, each handling different roles like project management and acquisitions. Having a strong team allowed him to scale his business without burning out.
Build a Winning Team
- Surround yourself with experts in acquisitions, project management, and sales.
- Hire people who complement your weaknesses.
- A strong team = faster growth and bigger deals.
Conclusion
Real estate partnerships can be a game-changer—but only if you do them right. Andrew Newlon’s experience proves that success comes from choosing the right partner, being flexible, and planning ahead.
Before you enter a partnership, remember to:
- Find someone who shares your purpose, goals, and values
- Understand that partnerships can be temporary
- Have a clear exit strategy in place from the beginning
By following these tips, you can avoid common pitfalls and build a partnership that helps you succeed in real estate.
No matter where you are in your real estate journey, having the right partner can make all the difference. Choose wisely, plan ahead, and watch your business grow!
