Partnering with Seasoned Investor as Mentor and Becoming his Property Manager?

[Eric O'Brian]

Hello All,

I have been getting into real estate the past few months, started out posting yellow signs every weekend for 6 months, and have also been sending out yellow letters for the past 6 months, around 1000 / month.

I've gotten really close to closing on a triplex at a great price, however it ended up falling through.

I'm 27, currently work full time as a mechanical engineer, however I would like to quit my job and devote my time to going back to school and medical issues with my shoulder (rehab takes a few hours a day), while working part time.

I was planning on helping a seasoned investor I know with his property management. He said he would pay me $1500 / mo to manage 15 properties, and said since they are well maintained they will not require much attention. He said about 5 hours a week or so of work is needed, more when a property needs a new tenant.

Is this possible? I've heard horror stories about property management- this seems too good to be true.

Also, what should I watch out for when partnering with my real estate investor acquaintance? We were going to both invest $50k and split 50/50 on the profits on that triplex, which would have brought us both about $300-$400 / mo profit after costs.

I want to trust him, but I also want to safeguard against anything going wrong.

My goals are to simply buy property, both Multi-Family Units and SFR's, and create a passive income stream to help me with my goals of going back to school and creating something bigger with my life.

Any advice is greatly appreciated!

Thank you,

Eric

[Jenna Stonecipher]

I can't speak on the property management questions. I'm pretty new to landlording and have never held a position as property manager.

Joint ventures can be beneficial to both parties if the numbers look right and your cross your legal t's and dot your legal i's. Check this thread out about how 2 investors came together on one deal. They created a separate LLC and bank account. Simple put, you need legal guidance on this. Nothing worse is a good relationship gone south because of a poorly executed business venture.

http://www.biggerpockets.com/forums/223/topics/110123-long-overdue-success-story---bp-partnership