I am an experienced Northern Michigan investor and contractor focused on buying distressed properties, rehabbing and holding as long term rentals. Although investment is my full-time job, I find far more deals than I have time or cash to complete. Ive recently considered taking on a partner. The thought is with the right partnership I can grow at a faster rate then alone. I started the business alone and never partnered in the beginning, and continually debate the pros and cons of a partnership now. Any thoughts on structuring a partnership, or dividing workload? Success stories?
Are you asking in the context of STRs? This seems like a rather generic question.
@Donald Murphy I've also been considering the same situation. I've had great success with a STR in Gatlinburg, TN and went to put the pedal to the metal. I could probably use existing cash plus a cash out refi to buy another VR in TN bug am wondering if flipping and/or apartment buildings is the way to go. I've been prodding some local friends in CT but they are resistant. I too have considered partnering but there are the obvious pros/cons, for starters perfect strangers in some cases. Maybe we could chat about this sometime soon. If for anything we could maybe teach each other new things and help each other think of things we otherwise alone may not have even if it all never winds up in a partnership. Reach out to me some time Donald!
Back in the day when mutual funds were hot, Investment clubs were popping up everywhere to pool resources. No reason it can't work with REI too (and assume some people on BP will have success stories). I just put a cabin under contract in Gatlinburg as well and know we have turned a corner when my wife is already talking about our next one. Have some friends asking if we want to pool money (some I would and some I would not). Obviously structure is key.
@Jeff Piscioniere don't leave me out : )
@Lucas Carl and I have had our eye on a boutique hotel in Gatlinburg to add to our portfolio. We have done partnerships on cabins in the past as well.
We would definitely love to chat with other like-minded investors on the possibility of a hotel or apartment building.
I definately think pooling resources with the right people can reach goals that some investors can not reach alone. What seems difficult at the moment is finding the right people and structuring the deals appropriately, especially since I have only invested as a single member LLC.