Working With Partners

[Dave R Ludolph]

Hey BiggerPockets fam! I plan on buying my first property by January 1 at the very latest. I just kind of wanted to tell everyone my plan with my partner and see what you all think. Constructive criticism welcome! I plan on investing locally here in Cape Girardeau, MO to start out and then eventually branch out. I have lived here my whole life and have been studying the market long before I even thought about investing in real estate. I plan on using a partner for this for as many deals as possible. This partner is like a brother to me. I have known this person basically my entire life. We are very honest with each other and have always respected each other even with our differences. We are looking at this at the aspect that the more we can work together the faster we can scale. Twice the income, half the risk, half the monthly cashflow. We plan on reinvesting all the cashflow into more properties until we make enough for both of us to retire from our jobs. As of right now we decided to get an LLC right off the bat. This wouldn't have been as important to me if i was going into business by myself but my partner and I both value the benefits of having one. We figured we might as well get it out of the way if we are going to scale the way we plan to. We have an operating agreement that basically states we own 50/50. Trying to find a good accountant at the moment. I've talked to two so far and only one does the tax side of accounting. I may use that one but I'm going to continue looking for one. My real estate agent is actually a broker. I went to high school with him and played some sports with him. He is probably the highest selling realtor in town. He also invests in apartments AND owns a property management company. He has offered his services as a advisor, real estate agent, and property manager. I can't be thankful enough for that. This week i plan on getting a final answer on getting a HELOC for my current residence. I'm hoping to get access to about $15,000 from that. My partner and I both plan on using money from our HELOC on our personal residence as down payments toward properties for short term financing. We both want to BRRRR. From my understanding we can then get commercial loans on the property and a commercial loan to rehab the property. We want to repeat the process trying to double the doors acquired from each previous deal.