Advice for beginning LLCs/partnerships

2 Replies

Hey y’all,

My best friend and (I've known him all my life/basically my brother) are starting an LLC to invest in real estate together.

We have pretty complimentary personalities and skills. I’m an electrician by trade, quite handy, etc. He is an excellent project manager. At one point, he oversaw 18 retail shops across the country for a leather goods company.

Do you have any advice for long term partnerships?

We definitely plan on getting our agreement in contract and doing everything we can to ensure a successful and harmonious business and friendship.

Thanks!

Hey @Ted Swagerty

It sounds like you have/plan to do all the things you really can do to ensure a long-lasting and successful partnership.

Getting everything in writing is the first big one so that if disputes arise, you have a way to quickly resolve these. 

Also, have separate duties and responsibilities that play to each other's strengths. There should still be a little bit of checks and balances but make sure you aren't stepping on each other's toes. 

Also, be sure you're running things like a business and not a friendship. Being friends is huge because you have already built the trust but it can also add a ton of emotions to the picture, which will cloud judgement. 

At the end of the day though, it'll either work out or it won't. Just like a marriage, you could both feel strongly that it's a fantastic idea and then 5 years later (or less) everything falls apart. 

Hope that helps a bit! Feel free to reach out anytime if you have other questions or just want to chat!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you