Partnership to start?

[Ryan R.]

How many of you recommend forming a partnership to start your investing?

I've got the necessary skills and money to rehab a property to flip or rent but my main constraint is time. My job often requires me to travel at a moments notice. I may go 2 months without traveling and then all of a sudden travel 3 weeks in a row.

I'm thinking that it would be worth a reduction in profit to get the extra assistance from a partner. Someone who could be at the property 7 days a week to monitor contractors and perform simple tasks such as painting, landscaping, etc.

What say you?

[Brandon Turner]

Hey Ryan,
I'd suggest using it on a case-by-case basis - not a partnership for your whole business. Evaluate each house separately and bring in help when needed. You may not even need a partner if you find a good enough project manager - but that can be hard at the start.

For years, I was the "other guy" and I didn't have the money but I had the time, so I would work with people just like you and I'd manage the flip. However - without trying to sound really arrogant - finding guys like me is tough. What I mean is this: trying to find a guy who knows the business, knows how to deal with contractors, knows how to keep prices down, and is dependable and honest is hard.

Once you find that person -hold on to them. I'm now switching a lot of my business around to be the other side of the equation, so I'm also making the same decisions you are!

The other thing is - perhaps big rehabs aren't the right way to go right now. Maybe multifamily is better, so you can buy and then put a property manager in place to look after it. Just a thought.

Good luck and keep in touch!