Risky partnership or good way to get in the door?

[Shlomo Rozen]

Hi have been wanting to get into my first investment for a while. I am a property manager and can operate the propert myself. But i have limited capital. Someone recently approached me about a partnership. The target is a rent ready single family in Detroit for a max of $50,000.He has a few other investment properties and has the experience I lack when it comes to analyzing the numbers and knowing how to to recognize a good deal. The issue is that he claims to not be able to get a mortgage in his name due to "having too many properties in his name". We would split the money down and responsibilities of the asset. Is this a risky scenario for me to be the only one on the mortgage? Would an operating agreement help mitigate the risks? My understanding is the operating agreements only help for entity's such as llc etc.

[Drew Sygit]

@Shlomo Rozen I've seen this type of "partnership" work, but most often do an ugly meltdown.

Nobody wants to spend the time & effort to properly establish a formal partnership, with an LLC, Operating Agreement, etc.

So, when negative cashflow requires the partners to inject their own capital - there's finger-pointing and a meltdown.

Proceed with MAX caution...