Foreign (Chinese) Investors
I joined BP a couple of months ago, mostly to get around to asking this question. How to approach this problem has been rattling around in my mind for about 3 months now.
I've been a small time landlord for about 28 years now, owning no more than 4 units (SFH or condo, currently own 2, no debt) at a time, always with little or no debt never with a partner. But I've consistently done well over that time. Yes, I'm very conservative in my approach and a control freak when it comes to my properties.
In my day job I'm a statistician, and work with colleagues in China on a regular basis. Over the years I've had a few casual inquiries from Chinese colleagues about investing in Orlando, FL properties (where I live) with me, which I've dismissed as not something I want to do. Usually that ends the matter.
About 6 months ago I got an inquiry about partnering to invest a low-mid 6 figure amount in a partnership to buy SFH/Condos in Orlando. I would also invest, control the LLC, and manage the properties. The Chinese investor (for now, anyway) wants to invest passively toward a 15 year retirement horizon. He has been fairly active in pressing to do a deal. We haven't gotten down to the details of the partnership, but I'm confident I could structure this pretty well as I want.
I would seriously appreciate any thoughts on the matter. I'm still pretty reluctant as this would be a departure from my past practices, and gaining a partner would undoubtedly cut into my control freak mindset. As a statistician venturing into the unknown brings up all sorts of risk-related thoughts and possibilities, most of which I have limited control. But on the other hand, when opportunity knocks sometimes it's best to toss the security blanket and trade in the binky ...
Deal structuring advice, financial and tax issues, and random thoughts all appreciated.
Mods: I'm not sure what topic I should have put this. Please move as appropriate