Partnering on deals for the first time

[Stephen Brieloff]

I am relatively new to investing, with one rental property under my, and my wife's, belt. I am currently looking to purchase a second rental property in the Chicagoland area. Based on the capital I have available and some of the opportunities I am looking at, I do not have enough to finance an opportunity on my own.

I can either wait until I build up the financing myself, or try to partner with someone. Though I like the idea of having sole control and ownership over a property, it makes sense to partner in order move closer to my investing goals if the deal is right. However, I have never done a partnership and could use some advice!

My questions:

1. How do you identify the right (and wrong) person to partner with?
2. What have been good sources of identifying potential partners? Personal network? Through realtor/other member of your team?
3. How have you successfully approached a potential partner with a deal?
4. How have you handled operating agreements between partners? Formal? Informal?