Partnerships: When is the right time to pursue one?

[Stephen Brown]

Hello BP,

I really want to grow my business this year and therefore I was contemplating partnerships and private money. I've listened to many BP podcasts that have guests that go this route and are very successful with it. I brought the idea up to my father last night who is a pretty successful businessman but not real estate investor. He told me to never get into a partnership as it is very risky and people change when money is involved. He said maybe I should consider doing it with someone that I've known for more than 10 years but that's it. 

My questions are the following:

1. For those that have had successful partnerships with others or have used private money. Are these people that you've known for a long time? Would you recommend going the family route or trying to develop a relationship over the next few years with someone who knows real estate?

2. Would a quick partnership be less risky and worth pursuing? So rather than a rental business, do a flip and then end it?

3. Has anyone here had a negative experience with a partner or private money? What was the outcome? Did you end up going solo? Or are you in a partnership currently?

Thanks for sharing your story!

3. trustwothiness