My name is Peter and I am 24. I have a two friends who have similar goals/aspirations and we would like to start investing in real estate. We are trying to read everything (books, forums, etc.) and listen to everything (bp pocasts, meetups, etc.) to educate ourselves as best as possible, but would like some advice on a few things. We are thinking we would like to get into the business of buying properties that need some work, rehabbing them, renting them out and then slowly acquiring more and larger unit properties over time.
#1 What does it look like applying for loans as partners? Do you need to form some sort of corporation like an LLC?
#2 Would you say going into business with friends is a bad idea? I have known these two guys forever and we are like brothers. We all bring different skills to the table (they have a landscaping/home remodeling business, and I'm more of an accounting and numbers guys) that we believe would make a good team.
Thanks for all the future advice :)
Hi Peter. It appears you are interested in the BRRR strategy. I will respond to your inquiry about partnerships. As long as the partnership agreement is structured correctly and that you all can establish cash flow criteria for prospective investment projects. Partnerships requires profit splitting, likely equity sharing .Therefore finding deals that will cash flow well to guarantee that you and your partners all succeed in yall deals. There are pros and cons to everything. Best wishes!