Welcome back. At some point in your real estate investment career, you're going to
Welcome back. At some point in your real estate investment career, you're going to

have to get outside of yourself, you're going to have to move past your own
have to get outside of yourself, you're going to have to move past your own

resources. So, the burning question is, "How do real estate partnerships work?"
resources. So, the burning question is, "How do real estate partnerships work?"

Hey friends, Stephen Michael Miller here and as you can see, I've got this
Hey friends, Stephen Michael Miller here and as you can see, I've got this

beautiful laptop here and I've got another question from you. And so, I want
beautiful laptop here and I've got another question from you. And so, I want

to go ahead and jump right in here, says, "Great video. I have a question", It says
to go ahead and jump right in here, says, "Great video. I have a question", It says

Kris but I know you meant me, you meant Stephen. I it's okay I get it.
Kris but I know you meant me, you meant Stephen. I it's okay I get it.

"I've got a question. If you split as a partner 50/50, for who put the deals and
"I've got a question. If you split as a partner 50/50, for who put the deals and

knowledge, it's infinite ROI but for who put the money, it gets from a great 10
knowledge, it's infinite ROI but for who put the money, it gets from a great 10

to 11% to 5% which is not so good. How to convince them for
to 11% to 5% which is not so good. How to convince them for

5%? So, basically you're asking, "Hey, I'm doing a 50/50 partnership.
5%? So, basically you're asking, "Hey, I'm doing a 50/50 partnership.

They're putting all the money and maybe credit into it. I'm doing all the work.
They're putting all the money and maybe credit into it. I'm doing all the work.

How do I convince them that's a good R-O-I if we start it at a 10% and
How do I convince them that's a good R-O-I if we start it at a 10% and

they're not only getting 5, how do I convince them that's a good R-O-I? Well,
they're not only getting 5, how do I convince them that's a good R-O-I? Well,

maybe we should start first of all, with what is a really good R-O-I? You said 10
maybe we should start first of all, with what is a really good R-O-I? You said 10

to 11% is a great R-O-I. I'll agree a little bit. That's a decent R-O-I,
to 11% is a great R-O-I. I'll agree a little bit. That's a decent R-O-I,

it's not amazing. We're experiencing very typical 20 to 25%
it's not amazing. We're experiencing very typical 20 to 25%

percent R-O-I's. And so, when you look at that, a 20 to 25%
percent R-O-I's. And so, when you look at that, a 20 to 25%

R-O-I split in half, it'll be somewhere in the 10 to 12.5%
R-O-I split in half, it'll be somewhere in the 10 to 12.5%

range, right? 10 to 12.5% percent R-O-I is amazing for anybody, right?
range, right? 10 to 12.5% percent R-O-I is amazing for anybody, right?

In the normal world and I want to talk about normal returns and what most
In the normal world and I want to talk about normal returns and what most

people are expecting. Because as you're talking about convincing somebody to do
people are expecting. Because as you're talking about convincing somebody to do

more real estate with you, you want to understand what they're experiencing in
more real estate with you, you want to understand what they're experiencing in

the normal world. So, just let me ask you a question,
the normal world. So, just let me ask you a question,

and I'm... Don't worry I won't wait for a response here. But the question is, is
and I'm... Don't worry I won't wait for a response here. But the question is, is

what do most people putting their money in, right? What do most people, when they
what do most people putting their money in, right? What do most people, when they

earn money, how are they investing that money? Well, first of all, I'll tell you,
earn money, how are they investing that money? Well, first of all, I'll tell you,

most people aren't investing. Like that's just the flat-out truth.
most people aren't investing. Like that's just the flat-out truth.

Most people are investing nothing. So, they're getting zero, a zero rate of
Most people are investing nothing. So, they're getting zero, a zero rate of

return. Those that are investing, the very typical investment strategies are put it
return. Those that are investing, the very typical investment strategies are put it

in your 401k, maybe your IRA, maybe your you've got it in a bank account or like
in your 401k, maybe your IRA, maybe your you've got it in a bank account or like

a money market account, right? That's giving you a little bit more than
a money market account, right? That's giving you a little bit more than

nothing. Maybe you're getting stocks or playing the stock
nothing. Maybe you're getting stocks or playing the stock

market a little bit. Maybe you're even investing in crypto currencies or some
market a little bit. Maybe you're even investing in crypto currencies or some

things like that, right? So, most people are investing in
things like that, right? So, most people are investing in

what I would say, I would call them extremely risky investments. Those first
what I would say, I would call them extremely risky investments. Those first

3, I think that I that I name, the 401k, the IRA and the bank. Although,
3, I think that I that I name, the 401k, the IRA and the bank. Although,

the world would call them safe, I call them extremely risky because I know that
the world would call them safe, I call them extremely risky because I know that

it will never be enough like it will never make me enough money to create a
it will never be enough like it will never make me enough money to create a

retirement that I'm looking for. And let's just talk about those first 3,
retirement that I'm looking for. And let's just talk about those first 3,

The IRA, the 401k and the bank. The bank, you're going to get maybe a fraction
The IRA, the 401k and the bank. The bank, you're going to get maybe a fraction

of a percent, right? Maybe if it's a money market account, maybe you could make up
of a percent, right? Maybe if it's a money market account, maybe you could make up

to 2 or 3%, maybe up to 5 if it's a really, really, really
to 2 or 3%, maybe up to 5 if it's a really, really, really

awesome. Probably not that much at all. Right. So, you're going to get only a couple
awesome. Probably not that much at all. Right. So, you're going to get only a couple

percent. The IRA and 401k you're probably averaged over it's the life of the 401k
percent. The IRA and 401k you're probably averaged over it's the life of the 401k

or IRA. You'll probably average 4 maybe 5%.
or IRA. You'll probably average 4 maybe 5%.

Maybe even less depending on what the markets doing. I mean, if we
Maybe even less depending on what the markets doing. I mean, if we

go back to 2007 and 08 of course. You know, we had a lot of people that lost a
go back to 2007 and 08 of course. You know, we had a lot of people that lost a

lot of money in their 401ks and IRAs. And they are subject to that market
lot of money in their 401ks and IRAs. And they are subject to that market

fluctuation where people have no control. So, that being said, if those are the
fluctuation where people have no control. So, that being said, if those are the

typical investments that people are putting their money in and they're only
typical investments that people are putting their money in and they're only

getting, you know, 3, 4% maybe less. Then getting a 5 or 6%
getting, you know, 3, 4% maybe less. Then getting a 5 or 6%

return is better, it's not amazing. But if they're able to get it
return is better, it's not amazing. But if they're able to get it

10 to 12% return, like that's pretty awesome.
10 to 12% return, like that's pretty awesome.

Like, that's not that's doubling potentially maybe what they're getting
Like, that's not that's doubling potentially maybe what they're getting

at the very highest. And that's a great opportunity. So, the
at the very highest. And that's a great opportunity. So, the

convincing really comes in understanding, what they're doing and also having
convincing really comes in understanding, what they're doing and also having

access to better properties or finding better deals, right? At a 10%,
access to better properties or finding better deals, right? At a 10%,

maybe you're not going to be able convince somebody. But if you're but offer them
maybe you're not going to be able convince somebody. But if you're but offer them

10% as their portion, you can you can convince them all day long. I do want
10% as their portion, you can you can convince them all day long. I do want

to touch on one more thing here. And this is the principle of FIFO or first-in,
to touch on one more thing here. And this is the principle of FIFO or first-in,

first-out. And this is just really important to
first-out. And this is just really important to

understand. As a matter of fact, I was talking with my daughter just yesterday.
understand. As a matter of fact, I was talking with my daughter just yesterday.

My daughter asked my wife if she could do a lemonade stand and my wife said,
My daughter asked my wife if she could do a lemonade stand and my wife said,

"Sure." And so, my daughter's, actually, two, my older daughters with one
"Sure." And so, my daughter's, actually, two, my older daughters with one

of their friends, went to the store and bought a whole bunch of stuff for this
of their friends, went to the store and bought a whole bunch of stuff for this

lemonade stand. Actually it was lemonade, popsicles and snow cones, right?
lemonade stand. Actually it was lemonade, popsicles and snow cones, right?

So, they went to the store to buy all this stuff for this lemonade stand.
So, they went to the store to buy all this stuff for this lemonade stand.

Brought it back and they're there doing their thing. I go up to visit them at
Brought it back and they're there doing their thing. I go up to visit them at

their lemonade stand and I said well, you know, "How you doing?"
their lemonade stand and I said well, you know, "How you doing?"

You know, "Where'd you get all this stuff?" they go, "We went to the store." I said, "Okay,
You know, "Where'd you get all this stuff?" they go, "We went to the store." I said, "Okay,

great. What did you spend on this?" And she said well, "My one friend, she spent $50
great. What did you spend on this?" And she said well, "My one friend, she spent $50

and I spent 20." Right? This is what she's telling me. I said, "So, you're $70 into
and I spent 20." Right? This is what she's telling me. I said, "So, you're $70 into

this. You realize you'll have to make $70 right now, the lemonade stand, to
this. You realize you'll have to make $70 right now, the lemonade stand, to

even break even. She's like, "Yeah, I know." You know, I said, "Okay. Alright." And at
even break even. She's like, "Yeah, I know." You know, I said, "Okay. Alright." And at

the end of the day she comes to me and she said, "Dad, we made $85!" And I'm
the end of the day she comes to me and she said, "Dad, we made $85!" And I'm

thinking to myself, "That's not bad, that's a pretty decent day at the at the lemonade
thinking to myself, "That's not bad, that's a pretty decent day at the at the lemonade

stand. And she said, "Yeah. We're going to split it 3 ways." And I said, "hold on,
stand. And she said, "Yeah. We're going to split it 3 ways." And I said, "hold on,

just hold on a second. You made the business, right? This lemonade stand, made
just hold on a second. You made the business, right? This lemonade stand, made

$85 but you put 20 in and your friend put 50 in do you think it's really fair
$85 but you put 20 in and your friend put 50 in do you think it's really fair

to split $85 three ways? When she put all that money in she won't even get back
to split $85 three ways? When she put all that money in she won't even get back

what she put in. And she said, "Oh", you know, this was a whole new thought for her.
what she put in. And she said, "Oh", you know, this was a whole new thought for her.

She didn't really understand it. So, I said, "Yeah, you've got to pay back the
She didn't really understand it. So, I said, "Yeah, you've got to pay back the

investor first." So, a lot of investors may not be thinking about this or maybe
investor first." So, a lot of investors may not be thinking about this or maybe

you're not structuring the conversation appropriately for that help them
you're not structuring the conversation appropriately for that help them

understand. But whenever someone puts their money into it, they're going to get
understand. But whenever someone puts their money into it, they're going to get

their money out of it first. This is how we structure all partnerships, right? The
their money out of it first. This is how we structure all partnerships, right? The

the person putting their money into it, it's going to get their capital
the person putting their money into it, it's going to get their capital

investment back first and then all profits are split 50-50. So, that's really
investment back first and then all profits are split 50-50. So, that's really

important because from there at least they know that their capital is going to
important because from there at least they know that their capital is going to

be secured for them, right? "Secured." There's all obviously risk and
be secured for them, right? "Secured." There's all obviously risk and

investment and people can lose money investment. But assuming that everything
investment and people can lose money investment. But assuming that everything

goes well, they're going to get their initial investment back and then all
goes well, they're going to get their initial investment back and then all

profits would be split 50/50. Another thing that I will say here is don't
profits would be split 50/50. Another thing that I will say here is don't

diminish the value that you're bringing to the table. If you're managing it,
diminish the value that you're bringing to the table. If you're managing it,

maintaining it, doing all the work for it, there is a huge value in that. And if
maintaining it, doing all the work for it, there is a huge value in that. And if

you're offering on top of that a 10% return or even a 7, 8, 9%
you're offering on top of that a 10% return or even a 7, 8, 9%

return, you're often them huge value allowing them to continue to do
return, you're often them huge value allowing them to continue to do

what they're doing which is earning more and more money. And getting now their
what they're doing which is earning more and more money. And getting now their

money to work for them which it's typically not
money to work for them which it's typically not

right now for most people. So, at the end of the day, you don't need to necessarily
right now for most people. So, at the end of the day, you don't need to necessarily

convince anybody. You just need to have a couple talking points and some
convince anybody. You just need to have a couple talking points and some

understanding on how that partnership works and once you've got that and you
understanding on how that partnership works and once you've got that and you

can communicate that appropriately, the right people are going to want to partner
can communicate that appropriately, the right people are going to want to partner

up with you. Alright friends, we give you a little bit about partnering. And if
up with you. Alright friends, we give you a little bit about partnering. And if

you want to learn how to do more in partnering or how to just learn more
you want to learn how to do more in partnering or how to just learn more

about real estate in general, please go ahead into the description below and
about real estate in general, please go ahead into the description below and

click on the link, click on our website. We have so many different resources. As a
click on the link, click on our website. We have so many different resources. As a

matter of fact, you can sit down and speak with one of our team to go over a
matter of fact, you can sit down and speak with one of our team to go over a

very specific plan of how you can see greater results in your real estate
very specific plan of how you can see greater results in your real estate

investing.
investing.