How do I make the best partnership? ? ?

Question

Hello, Bigger Pockets community!!! I am a first time home buyer trying to find a partner to make my first few deals with. On and off I've been studying real estate for two years, but in the last three months, I have been studying nonstop. I have money for a downpayment, experience in construction, and would like to be helped out with the rest. My goal is to generate cash flow through rental properties. I have a credit partner lined up. I have an LLC that I just made and even a couple of good deals lined up. What would be the dos and don'ts of structuring a partnership?

Nathan Caffero · Answer

@Chris Coleman@John Duston

So I would like to use the brrrr method. I would need a credit partner to help me with refi, because I have been self employed since covid. I've been in contact with a possible credit partner and would like to structure a deal in which she is paid $5000 for me to use his credit to refinance.

Chris Coleman · Answer

@Nathan Caffero you have the up front money, construction experience, an LLC, and even a few deals lined up.  Sounds like you already have a lot ready to move forward.

So I recommend determining exactly what you want or need a Partner to do.  Is it helping to secure debt financing?  Helping to work with attorneys or title companies on Closing?  Helping to list the property for rent, screen, lease, and manage tenants?

From all that you’ve studied about the business, what pieces of the puzzle are you looking for a Partner to take on?  You need to define that.

John Duston · Answer

The biggest do is to come to and understanding on goals, exit strategies, and possible issues. Then put that in writing Might help to talk to a lawyer, I know one if you want a referral.

Are you looking at buying something with an owner occupied or investment loan?