LLC partner rental investing

[Theo Seng]

I'm currently a junior in college at Troy university. A friend and I recognized that we both have a passion and desire to pursue rental investing in our future. The real estate in Alabama is so cheap and in this college town finding tenants won't be a huge issue. We just started an LLC and plan to buy our first rental investment property in the next month or so. Does anyone have any advice or warning with investing as an LLC or with a partner?

[Sasha Mohammed]

Hey  @Theo Seng

I would just make sure you guys have things clearly mapped out before getting going for real. for example, who gets to call the shots when one person wants to sell and the other doesn't? who gets to make the decisions if there's a disagreement between you two on, say a lending opportunity or a prospective tenant? how about costs associated with a renovation or repair needed?

make sure you clearly define roles, capital investments, and obligations for ALL potential scenarios so that you're on the same page about them well before they potentially arise. 

Many say to stay away from investing with friends or family members; i dont think inherently the relationship is the issue, so long as you've dotted i's and crossed t's well before it matters. 

As for LLC or not, i think LLC is a good move when dealing with a partnership