Exploring the Partner relationship

[Jordan Northrup]

Hello everyone!  I just closed on my first deal last week!  Now I'm looking to take down the next one.  I've been approached by several people about partnering on some deals.  I know that partnerships are a way to scale faster, but they also carry a certain amount of risk.  I'm familiar with dispersion of duties, dual ownership, and having everything written down in a signed agreement. 

What I'm curious about is when one of the partners wants to leave.  Let's say he moves away, changes jobs, doesn't want to do it anymore etc.  In that case, what happens to the business?  The properties would certainly have mortgages on them.  Would they all have to be refinanced out of the partner's name and 50% of the equity handed over?  For example, if we owed $80k on a $100k house, would I have to refi him out of the property and give him $10k in equity?  A situation like that would turn any cash flowing property into a liability and sink the business right?

[Matthew Irish-Jones]

If you are going to partner you should from an LLc and purchase as a company. You will need
To create an operating agreement for your LLC. When you or your lawyer do this you will need to spell out all of the questions and what happens in every situation.

Why do you want to partner? To add Capital or experience or something else?