Advice on Approaching Local Investor for Profit and Loss Partnership

[Lucas Rodrigues ferro]

Hello community,

I am reaching out to seek some valuable advice from experienced investors on approaching a local partner for a unique situation I find myself in.

I currently own a fourplex unit in Baton Rouge, but due to a relocation to Michigan, managing the property has become a significant challenge. Unfortunately, I haven't had much success in finding a management company that justifies the 12% fee they charge. Consequently, I am exploring the option of bringing in a local investor as a partner who will have a vested interest in managing the property effectively (skin in the game). 

The property is currently under an FHA loan locked in at 2.5%, which means I am unable to sell or refinance at this time. Given this constraint, I believe that bringing in a local partner with shared interests in equity from now on, profits, and losses could be a mutually beneficial arrangement. However, I am seeking advice from the community on critical points to consider before approaching a potential investor with this proposition.

I understand that every situation is unique, but any insights or personal experiences you can share would be immensely helpful as I navigate this potential partnership. Thank you all in advance for your time and valuable input!

Best,

Lucas Ferro