IRS Audit & Partnership

[Nick B.]

Hello BP,

I am considering partnering with an individual who is bringing me a deal (apartment complex).

However, he told me that he is being audited by IRS. Is this a deal breaker for me?

I am concerned that IRS can go after this partner and that somehow will affect the entire partnership. Another question is lender's reaction to this issue. Would a lender (Fannie or Freddie) automatically disqualify us? Last but not least are potential investors - are they going to pass on the deal when they see that one of the GPs are being investigated by the IRS?

Thanks
Nick