Group of investors partnering

[John Brennan]

Hi all

So myself and several friends are interested in REI and want to work together. Some are talking about doing a multi family as a partnership. I've read enough to be wary of forming a 5-6 person partnership. Any advice on how such a group can work together without all the pitfalls of a partnership?

Thanks

[Patricia Steiner]

John, a family member formed a partnership with several prominent individuals - and that partnership has successfully and profitably lasted for 40 years. Forming the right legal entity is important, having a managing partner (you?) while the others serve as investors, and agreeing on when to sell, hold, and distribute profits/expenses. What happens if one partner wants to cash out? What happens if one partner refuses to contribute to an unexpected expense? What happens if a partner in one deal passes on the next that the group does together? What happens when a partner decides to be more than an investor and wants to be "more active?"  And, what happens with a spouse wants to be involved - or a divorce, lawsuit hits?   A strong agreement between the partners can surely avoid all the things that go south whenever dealing with money and personalities.  Good luck as you move forward in what will surely be a "challenging and rewarding" experience.