Start Solo or With 3 Other Partners?

[Jordan M.]

Hi everyone. I have been lurking on BP for a little while now and simultaneously discussing my plans with a friend who is a potential business partner. Aside from him, our parents also want to partner up. I have been thinking about the pros and cons of partnering with them on our first property and continuing to do so as we move forward but I cannot help but think that four people partnering on one, or even two properties is a bit excessive. 

Both of our dads have excess cash they are looking to invest so we are looking for them to help us get started. My buddy has no liquid assets but can hustle and has lots of contacts in our area. I have some excess cash I am also looking to invest so while it seems like a no brainer that we all help one another, I guess I am just second guessing the idea since the little cash flow we will have at the beginning will be split so many ways.

I was hoping to get some unbiased opinions so anything you are willing to share would be appreciated. Thanks.

Jordan

[Steven Stokes]

Jordan,

So I have a question for you. What's the best way to ruin a happy family reunion? Answer: Invest money together. haha

It's kind of a joke but it's really kind of serious because it happens much more than people think it will and unless everyone knows their role and even more important stays in their lane then clashes, misunderstanding, bad feelings and unresolved issues will haunt you for years even after the investment has been disposed of.  The tricky part is you really will never know if it'll be smooth sailing or an ongoing nightmare until you're actually in the middle and everything is going sideways.

So, my advice is if you do not need partners, do it yourself. If you don't need family or friends then take the money. haha 

But really my friend be careful investing with friends and family. Remember nothing is more important than friends and family, even if you do invest together keep your friendship a priority over the money. 

That's the best advice I have.