scaling portfolio by partnership.

[Brandon Morgan]

hey guys I am new to real estate and I just got my first rental property this past year and have tenants and things are finally stable now. I was wondering how people managed to scale their businesses faster. I make a decent amount of money nearly from my W-2 (over 100k) but still not enough to easily buy another property this year especially if I have to put down 20%. I was debating if I should partner with a friend or family member who is willing to work on a property together. ill be sure to make sure things are done legally and fairly so no one get short sighted and things don't get messy. I was wondering how other people managed to start scaling their business faster. did you guys work with partners or do any deals? was there any downsides to working with friends or family? I am open to any past stories, recommendations or advice? my goal is to at least be able to buy one property a year.

[Alecia Loveless]

@Brandon Morgan I’ve worked with both friends and family over the years.

The two deals with friends both ended poorly with friendships ruined and tens of thousands in legal fees and court costs.

In the family deals we have agreed that family always comes first and in the event of conflict we will just sell the deals.

I would strongly recommend you have an exit strategy or multiple exit strategies in your partnership agreements.

I would do more deals with the family members as opposed to others. If I were to look for other funding I’d look for an investor with a set return. If I had to give up equity I would make sure it was a minority stake and I retained the majority. I would also make sure I controlled the checkbook or that we both had to sign the financials.