Partnering on Deals

[Wes Santos]

After having completed two SFH rental property deals over the past 3 years that are cash flowing well, I am thinking about doing a partner deal but not quite sure where to begin. Ideally, I would love to invest in a deal where I could eventually rent on AirBnB and be a place where I could also occasionally use as a get-a-way. Am wondering how to go about structuring a deal and would love to hear about any experiences you all have had with partners and how to deal looked.

Thanks!

[Dave Spooner]

@Wes Santos Whatever direction you choose to go, be sure to get a formal operating agreement in place. It may seem like overkill, especially if you end up partnering with someone you know well, but the last thing you want is a bad situation that is only made worse if you and your partner don't know how to properly extricate yourselves from it. Especially if you're taking on the additional risk that Airbnb brings (and making the asset for personal use at times).

There are quite a few articles online that discuss some of the basics, and you can even find boilerplate templates to use for free. It doesn't need to be overly complicated, just make sure you're both in agreement on the terms.