Post moved to more appropriate forum

4 Replies

Moved to General Investing. 

For starters, I hate partnerships.  I never do them.   I would use a Trust to buy property in and make each of you 50/50 partners as benificial interest in that trust.

Originally posted by @Josh Caldwell :

For starters, I hate partnerships.  I never do them.   I would use a Trust to buy property in and make each of you 50/50 partners as benificial interest in that trust.

 Thank you for the advise. I'll talk to my lawyer about the use of a Trust. Unfortunately I don't have the capital to scoff at this opportunity. 

In no way am I suggesting that you pass on this.  A friend with cash is a wonderful thing.  I am just telling you that I hate formal partnership, and would favor taking individual properties in a trust and spliting the benificial interest.  That way you are not tied into a formal partnership.

Nothing wrong with the idea of a partnership. In fact, it's the best way to "fill the gaps" in areas you are not good at...and you do the same for your partner. I do partnerships all the time. It isn't the idea of partnerships that is bad (it could be the greatest tool to success for a REI...just ask Henry Ford...OK, just observe what he did).  The assembly line is greatest example of how putting partnerships to work can lead to much greater success than trying to do it alone.

You can always recover lost funds.  You can never recover lost time, so you must duplicate your efforts...thus the need for good partnerships.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.