{"id":267,"date":"2006-11-16T21:57:58","date_gmt":"2006-11-17T04:57:58","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/2006\/11\/16\/real-estate-partnership-questions\/"},"modified":"2021-03-16T09:34:39","modified_gmt":"2021-03-16T15:34:39","slug":"2006-11-16-real-estate-partnership-questions","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2006-11-16-real-estate-partnership-questions","title":{"rendered":"Real Estate Partnership Questions"},"content":{"rendered":"

I was talking to some friends who were looking at purchasing a condo together. They wanted to know what I thought about the premise of them owning a rental property as partners. <\/p>\n

Should friends or family purchase rental property together?<\/b><\/p>\n

I try to advise people to stay away from partnering with friends or family, because more times then not, the relationship changes and not in a good way. With that in mind, if you are planning on a partnership, there are a few things I’d recommend you do. <\/p>\n

Questions to Discuss:<\/i><\/p>\n

    \n
  1. How you’ll purchase the property\n<\/li>\n
  2. Who will make payments on the mortgage? Utilities?\n<\/li>\n
  3. How will you split up any monthly profits?\n<\/li>\n
  4. Who will manage the books?\n<\/li>\n
  5. Will you manage the property or will you hire a management company?\n

    \nIf there is NO management company<\/b>\n<\/p>\n

  6. Who will be the point person for contact with the tenants?\n<\/li>\n
  7. Who will handle repairs or maintenance issues?\n

    \nIf there IS a management company<\/b>\n<\/p>\n

  8. Who will be the point person with the manager?\n

  9. How much can one person authorize or spend without the other partner’s consent?\n<\/li>\n
  10. What happens if one partner dies? Is incapacitated?\n<\/li>\n
  11. If the property is sold, how will the profits (if any) be split?\n<\/li>\n<\/p>\n<\/li>\n<\/li>\n<\/li>\n<\/ol>\n

    Once you’ve talked about these questions and have agreed upon the answers, you need to have a sit down with a real estate lawyer. Draft up a partnership agreement and be sure you are both comfortable with EVERYTHING in it. <\/p>\n

    If you’ve got additional questions to add to the list, please let us know.<\/p>\n","protected":false},"excerpt":{"rendered":"

    I was talking to some friends who were looking at purchasing a condo together. They wanted to know what I thought about the premise of them owning a rental property […]<\/p>\n","protected":false},"author":827,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4241],"tags":[564,565,104,190,440,563,562,561],"class_list":["post-267","post","type-post","status-publish","format-standard","hentry","category-real-estate-business-management","tag-company","tag-general","tag-invest","tag-landlord","tag-llc","tag-management","tag-manager","tag-partnership"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/827"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=267"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/267\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}