Thomas, I do remember starting out and egar to agree to things I'd never do now, my thought was that your deals might be longer terms, 3, 5, 7, 15 years, as you obtain more business you'll have anchors dragging yo in less profitable deals that you got involved with. But, if you are willing, by all means, have at it! Keep exits for yourself, like having your partner seller finance thier interest or just have sale option points along the way.... :)
Frank, I'm familiar with the Texas Series LLC and I almost opened one for Texas properties. I do like the concept, but it's not the same as individual LLCs. Accounting is consolidated, management functions and maintenance of the LLC, minutes, authorizations, etc are under one umbrella as opposed to having to address seperate maintenance issues of the enties. In some states, forming an LLC is not cheap, other states have ongoing fees and filing requirements, not only is it a pain, it can be expensive to have a string of seperate entities.
The lack of maintenance and attention to operations is the number one way to lose the liability protection offered. If the liability protection is lost, you become personally liable and at that point your ownership of all other LLCs becomes a target, not the properties inside those LLCs so much as the value of the company, then, in turn, liquidation may be necessary or required. So, they can come in the backdoor eventually.
Please allow me to summon or resident expert on finding threads on BP, @Steve Babiak! There was a thread where John Chapman chimed in on these LLC issues.
The ones that make out with 10 LLCs for 10 properties are the attorneys and accountants, your insurance agent will like it too, with a seperate policy on each house instead of having a cheaper umbrella policy on 10 properties.
As to partnerships, getting back on topic, you can devise any standard LLC to operate as a Series LLC, with the cell concept through the Operating Agreement amongst partners, having buy sell agreements, options, gurantees between partners and lending arrangements. While such arrangements are not as bullet proof as a court acting in a matter with a Series LLC, if you have strong enough partners to back up guarantees and they are insured, you should be fine.
If we are getting off point perhaps we should start another thread on LLCs.
I'd still suggest you consider your management aspects and charge for the efforts and then address the sharing of equities. :)