Partnership or property management

[Tarcizio Goncalves]

Hi BP community,

I wanted to run something by you all and hope you all could help me with my situation.

I have some funds to invest in real estate. I used a real estate agent to buy my first owner occupied 2-family and I really enjoyed the experience with this agent. He is a very experienced RE agent and is an investor as well. I also found that he is of good character and very honest. There was times during my search process that he could have sold me a more expensive property (bigger commission) but he was looking out for what was best for my scenario and my family.

My life is absolutely crazy now. Working full time, in school working on my master’s degree, and with a growing family, I literally have no extra time at this moment, but at the same time, I want to work on growing my portfolio.

My RE agent approached me about a month ago and brought up the idea of us partnering since he has all the time, knowledgeable of all of the laws and market, and very handy (which I am not).

Although I like the idea of partnering for my next deal, I hate the fact that I will have to split my profits since I will be the money partner.

Although I like the idea to have my agent manage, I do think it’s a valuable skill to learn how to manage properties.

Part of me wants to get a property manager until I finally have the time to manage the properties.

I am curious to know how you all view partnerships. What are the do’s and don’ts of a partnership? Can anyone provide a sample of a partnership they used? What would you do in my situation? 

[Dan Schwartz]

@Tarcizio Goncalves I see nothing of value here that warrants a sharing of ownership, if that's what your agent is suggesting.