Plenty of investors use a mix of education, networking, and a strong agent partnership because each one brings something different to the table.For someone buying their first place with plans to convert it to a rental later, having guidance on property type and future rental eligibility can make a big difference.

I'm finishing up an MBA in Data Analytics at Clemson and hold a bachelor’s degree in Industrial Engineering.I'm preparing to co-found an LLC with a fellow Army Captain as a 50/50 partnership focused on long-term rentals and BRRRR projects, or potential flips depending on cash flow.

Partnerships can also be powerful if you align with people who bring complementary strengths, like capital, construction expertise, or deal sourcing.In my case, I started with buy-and-hold rentals, but now our co-investing club pools capital to partner on larger projects together.

Make a partnership with someone who has the cash or they dont mind to take on the debt. 

In that setup, you issue them a 1099-INT, and your LLC deducts the interest as a business expense, so you’re only taxed on the net profit.If you just hand them a percentage of the flip profit without loan docs, the IRS may treat it as a partnership interest instead of a loan, which creates more complexity and taxes you don’t want.

If a lender isn’t local, what are the best ways to vet them to make sure they’re reliable and a good fit for long-term partnership?

I will propose that I am open to partnership provided that the circumstances are suitable.

Use preferred equity when you want partnership flexibility without the pressure of regular debt service.Both are tools—not competitors—in the same toolkit.

With any partnership, substantial economic effect is going to come into play here.

One way to simplify things is by making the management LLC single-member, which avoids the need to file a separate partnership return