When I was a brand new real estate investor, I learned that if I didn't have the money to buy a good real estate deal, someone else would. That someone else was a partner. But how do you structure a partnership? And how do you find those people with the money? And how do you make sure you don't end up with the wrong partner who starts off great and then turns into a nightmare? Well, all of those questions and more are what I'm covering in this episode with my special guest and my mentor, John Shob. And we're getting started right now.

Welcome to the podcast Real Estate Investing with Coach Carson. I'm your host, Chad Carson. You

can also call me Coach Carson, and this is a show to help you get out of the financial grind so you can spend your time doing more of what matters. And now let's get to my interview with a real estate investor who successfully used partnerships for over five decades in his rental property business, John Schaubb. One of the topics that I'm hearing a lot lately is that people get into rental property investing. They understand the benefits.

They've got one or two properties.

Then they run out of money. They have no money left. And they still want to get, they want to follow your advice of at least buying one property per year. But they're sort of stuck on this idea that I might have to wait two or three, four years to save up enough cash to do it. Something that I learned from you early on was to use partners, use other people's money. I don't know. You've done that a lot in your career. I was wondering if we could go, just tell a little story, go back because a lot of people hear your story and many decades into your investing. But when you first started early in your career when you ran out of money or you didn't have the money to invest. I just want to, I'm curious how you could tell people how that worked and what it was like for you at that point as the entrepreneur trying to go out and buy properties. Yeah, yeah. Well, I think like most people, when I first started, I thought what I would be able to do is go down to the bank and borrow some money to buy a house. And I tried that, but it didn't work. My income wasn't high enough. I was selling real estate. I was making some money. But they don't like commission income. You know, they like to see a salary, a W2 form that shows you to get paid so much every week, and I didn't have that.

And also, I was finding deals that the banks didn't like.

You know, they're pretty particular about what they'll lend against.

And, you know, if you find a house that needs a lot of work, they really don't want to make that loan because what they have is a house they can't sell to somebody else.

So there's a number of reasons that I could not borrow from

banks. So I, you know, would look for deals. And the first fellow I invested with had made money

in real estate. And I think that's probably a key to this operation is you don't want to try to

invest with somebody who's never owned any real estate.

You know, if they just won the lottery, or if they've been in the stock market or just inherited a bunch of money,

they may want to invest with you, but you should be careful about who you invest with.

It's real important.

A couple things.

Number one is whoever you're investing

with is honest. You know, is it on the same page you are as far as your business ethics. But

just as important probably is their plan. Do they want to hold something for a long time,

or they expect you to buy it and sell it and make a profit and you know six months and giving their money back and sometimes things change sometimes

people say they want to be in for a long time and then six months later they need the money back

and I'll talk about that a little bit later but you know going in if you're going to be an investor

...