Investor · Lenexa, KS · Member since 2016 · 36 posts · 14 votes
BP Nation,
I have asked this question before but with limited response. I am thinking of partnering on my next deal. I have only done my own MF rentals in Kansas City area. I want to go a bit bigger and have some interested parties. However, I do not like the idea of a partnership marriage. Does it have to be this way? Are there examples of successful joint ventures. Or, is it best to have your attorney put together an inked partnership so all parties know where they stand? I need some direction here from the experienced ones! Thank you in advance. Take care.
I don't know the answer, but I would like to learn it as well. I will start working for a group that syndicates multi family and commercial deals in KC. I know we do it a lot and do it well. I will ask my future boss and owner your question and get back with you, as it will help me as much as you! I will also keep track of others answers here as well.
Attorney · Sacramento, CA · Member since 2014 · 300 posts · 172 votes
9y
A joint venture is a type of partnership. A JV agreement does not have to wed you to that group for any longer than you agree to. In other words, the JV can be for 1 project. As an attorney, I always recommend that people seek legal advice for legal questions. It's no different than seeking medical, go to the doc.
Please be advised that the information offered here is just that, information, and not legal advice.
Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
9y
I would only look at partnering on short term (no more than 5-7 years) deals. I would also only structure the deals so that one partner is a capital partner and the other is a managing partner, unless I knew the person I was JVing with well. Having CLEARLY defined roles in the partnership is the only way to go.
Investor · Lenexa, KS · Member since 2016 · 36 posts · 14 votes
9y
@Jared K. I would love to know how the big boys put these together as I imagine it is the best and most well thought out framework.
Appreciate all the responses. Sounds like you can construct a JV agreement with time bound limits and avoid putting together a deal specific partnership with separate LLP and all of that.