What do you look for in a partnership on long term rentals?

3 Replies

I'm currently looking at a couple potential deals around the 12%-20% CoCROI, typically making $100-$250 a month. Are deals like this worth going into partnerships over? I've talked to a few other investors and most have a minimum of 8% at $150 a month but as far as I know, that's not with JVs. What's your requirements for long term rentals and partnerships?

@Elijah Williamson first off I'd like to say welcome to BP. Just like you I'm new to real estate as well. I am construction electrician and throughout my years in the business have met some great people. Two years ago I did a huge restaurant job for a guy who owns a chain of restaurants in my area. While doing these restaurants I got to know the owner very well. He was heavily involved in the construction of the restaurant and we work together very well. We have just sat down and hammered out a deal where we are going to purchase a piece of property and build a fourplex on that property. His only responsibility is to do the foundation for the building and to completely Finance the project 100%. My responsibilities are project manager, general contractor, and overall construction of the project from start to finish including all permits necessary. So I guess to answer your question, what I look for in a partner it's someone I can work with well. Someone that's easygoing not a high-strung personality, someone that has the skills to compliment mine, and most importantly someone I can trust and that I know has my back just like I have their back.

The issue I'm having right now is trying to figure out which business structure or entity to use for our partnership. We are planning to build and hold rental properties trying to structure our company with me as a 51% and him at 49% leaving all business decisions in the end up to me. Good luck and feel free to reach out anytime.

@Leon Doucette  the model of 51/49 sounds great, however might be a tough sell if they are financing 100% of the please let me know how that goes. thats giving you full control of their cash and seems like an unreasonable ask. The typical I would say is 50/50 however some people like better returns for their money and might request 60/40 in favour of the cash investor.