How to Generate Partnership Deal
Good evening BP Community,
I am starting out investing in real estate and I am trying to create a good partnership deal with a family member that is willing to relocate and use a FHA loan for a 2-4 unit home. What are good deals that can benefit the partnership?
What do you mean by good deals? Or are you asking what are the benefits for the partners to go into business together?
For example, if I go into a partnership with a family member that is going to use the FHA on a multi-family. I am going to fund the down-payment and manage the property. How can the costs, equity, and rental income be split-up?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Make sure you and your partner are in a clear understanding of roles and responsibilities. Put it in writing always, get a lawyer to draft up paperwork.
I agree with Eliott, make sure each of you know your roles and responsibility. Have a lawyer draft up the LLC and make it very clear what will happen if either of you decide to get out of the deal or future deals and how the equity of the property will be split.
Getting into business with family can either be amazing or a nightmare. Make sure you have everything in place so if things go sour, you are already a few steps ahead and have an agreement on how to proceed.