First Deal: Go Solo or Partner Up?

Question

Hey BP,

I’m gearing up to close my first deal this fall. I’ve walked a ton of properties, narrowed down the area, and I’m ready to get in. It’s a house hack, 5% down, and I’ve got ~$100K in capital to start. Plan is to do multiple deals over the next 2 years.

Here’s where I’m torn:

• Solo: I can do this first deal alone. I’d keep all the equity and cash flow, use the low-down loan, and move with full control. Since I’ve got the capital, that feels clean and simple.
• Partner: I’ve got two potential partners — one’s a contractor, the other has good real estate experience. They could definitely help analyze deals and speed up scaling. But I’d be giving up part of this first deal’s upside, and it’s a really strong one. The low-down loan especially feels like a big advantage to keep to myself.

Solo: I can do this first deal alone. I’d keep all the equity and cash flow, use the low-down loan, and move with full control. Since I’ve got the capital, that feels clean and simple.

Partner: I’ve got two potential partners — one’s a contractor, the other has good real estate experience. They could definitely help analyze deals and speed up scaling. But I’d be giving up part of this first deal’s upside, and it’s a really strong one. The low-down loan especially feels like a big advantage to keep to myself.

So — start solo and bring them in later? Or partner now and move faster long-term?

Anyone else wrestle with this?

Appreciate any thoughts.

Aaron Zimmerman · Answer

Solo to start but network with as many investors as possible to expand your network of tradespeople, lenders, realtors, etc. $100k is probably more than enough to house hack depending on area.

You can always partner later and with the experience of your first property, you're a more valuable partner because you have more experience.

Bryce Jamison · Answer

Solo solo solo!!! The only ship that won't sail is a partnership.

Perfect timing on your question. @David Greene answers a partnership question on his latest Seeing Greene episode 66.

Basically he says no matter what, one person is going to feel like they're being taken advantage of. Even if you say you'll split the work 50/50 you create other work to do because now you're checking on your partners work and you may not be happy with how they're doing this. He then goes on to explain how to create an entity to bring other people in, then if one person is pulling more weight than others the entity can have a system to pay them out more.

E.J. McCaffrey · Answer

Welcome to the group!

Real estate investment partnerships can offer exciting opportunities to grow your business, but they also come with a unique set of challenges. One of the biggest hurdles is shared control - major decisions typically require agreement from all partners. This can slow progress or cause friction, especially if the partners have differing goals, expectations, or risk tolerance. Another common issue is how profits are divided. Even if one person contributes more time or effort, income is usually split based on the original agreement, which can create tension if roles and responsibilities aren’t clearly defined from the start.

Exiting a partnership or selling your share can be complicated as well. It often requires formal approval from other partners, legal assistance, and updates to key documents. Financing can be more difficult too since lenders typically want personal guarantees from all partners and may hesitate if there’s uncertainty around creditworthiness or operational roles. Taxes add another layer of complexity. Although partnerships benefit from pass-through taxation, each partner receives a Schedule K-1, and differences in handling deductions like depreciation can lead to disputes. Even with a well-written agreement, conflicts around money, effort, or long-term vision can strain both business and personal relationships.

That said, partnerships also come with real advantages. A major benefit is the ability to pool resources—combining capital, credit, and skills allows you to take on bigger or more diverse deals than you could manage on your own. Risk is also shared. In a limited partnership, for instance, personal exposure can be reduced. Plus, each partner brings unique strengths to the table. One might specialize in construction, another in deal analysis, and another in tenant relations. This division of labor makes operations more efficient and gives the team access to better deals through a broader network.

As you approach your first deal with a clear house hack strategy, just 5% down, and $100K in capital, you’re in a strong position. The big question is whether to go solo or bring in partners from the start. Going solo gives you full control over decisions and lets you keep 100% of the equity, cash flow, and tax benefits. Given that this is an owner-occupied loan with favorable terms, doing it on your own could be a rare opportunity to learn every step of the process without having to manage anyone else’s expectations or split the profits.

On the other hand, bringing in trusted partners, like a contractor or someone with real estate experience, could help you scale faster. You’d get support with renovations, deal analysis, and operations, which might allow you to grow more quickly. However, that means dividing profits, sharing control, and clearly defining everyone’s roles and responsibilities upfront. It’s a tradeoff between speed and simplicity, and there’s no one-size-fits-all answer.

Whichever path you choose, it’s essential to build a solid foundation in both tax planning and asset protection. These two areas are often overlooked in the excitement of getting started but are crucial for long-term success. A smart tax strategy ensures you're maximizing deductions, using the most favorable structures, and keeping more of your income. Proactive tax planning reduces your overall burden and gives you more financial flexibility down the road.

At the same time, a strong asset protection plan helps shield your personal wealth from lawsuits, liabilities, or creditor claims. Real estate investing comes with risk, and the right legal structures, such as LLCs or trusts, can help protect what you’ve built. Proper planning also puts you in a better position to negotiate if legal issues arise and helps limit your exposure.

To navigate all of this successfully, work with experienced professionals. A qualified real estate-focused tax advisor and an asset protection attorney who understands your goals can make a huge difference. Getting the right guidance now can help you avoid major headaches later and give you confidence as you scale your portfolio.

Wishing you success!

Disclaimer: This message is for informational and educational purposes only and should not be considered legal, tax, financial, or investment advice. No attorney-client, fiduciary, or advisory relationship is created by this communication. Always consult with qualified professionals familiar with your specific situation before making any decisions.