Best approach for a partnership

4 Replies

@Tatiana Conta

Best approach is to reconsider before you lose a) your investment or b) your friend or c) both. Only half-joking. Partnerships are marriages: very easy to get into but not out of.

If you insist on this bad idea, please explain your reasoning and the details. Who does what, who brings what to the table, what is the exit strategy etc.

@Michael Plaks frustrated that everyone mentions the cons, I am well aware lol. However, RE investors thrive on partnerships. My opinion is that if everything is laid out accordingly in papers it should be fine.

We are both starting out in RE investing, and it is scary to do it all on your own. We both have the capital and are looking for each other’s support and knowledge. He is good with construction knowledge and I am good with documents and organizing.

To start our confidence we are looking to buy a cheap $60k house , rehabbing it. BRRRR approach.

Originally posted by @Tatiana Conta :

@Michael Plaks frustrated that everyone mentions the cons, I am well aware lol. However, RE investors thrive on partnerships. My opinion is that if everything is laid out accordingly in papers it should be fine.

We are both starting out in RE investing, and it is scary to do it all on your own. We both have the capital and are looking for each other’s support and knowledge. He is good with construction knowledge and I am good with documents and organizing.

To start our confidence we are looking to buy a cheap $60k house , rehabbing it. BRRRR approach.

It is far more frustrating and very costly when our warnings (that come from experience) come true. "It should be fine" is among the most famous last words. Triple so if you have a non-business relationship with this person.

Partnerships are not created for peer support to overcome fears. They are created for economic necessity or economic benefit reasons. You would be better off helping each other on your respective separate deals. 


@Tatiana Conta I’m not to familiar with partnerships but I can tell you for your first property you might want to do it alone. I’m sure your partner is great and all but take it for yourself and experience what it is to find a deal and go thru the rigorous work closing. If you wanted to share some work have your partner do work on the house with their construction experience, just things to stay open minded about. Good luck to you tho keep the feed updated