Guide to Partnering?

[Alison Wegenke]

Hello,

I was just wondering if anyone had a good resource they'd recommend for how to best utilize a partner? I have a highly trusted family friend who has expressed interest in partnering as we both get into real estate; however, we really don't know how this would work, what advantages (or disadvantages) there may be, or really anything about making this benefit us better than just going at it alone.

Any advice, articles, books, podcasts, or any references really would be greatly appreciated!

Thanks!

Alison

[Eddie Brady]

Hi Alison,

A perspective from the go-it-alone side of things...I've considered partnering with a good friend on deals and had to ask myself, "am I partnering because I just like this person? or because it makes sense for the investment?".

If both partners are new to investing and both partners don't have much money to throw at a deal, partnering might not make as much sense as simply being accountability partners for each other. When a partnership may make sense on the other hand is when you have time to work on the deals and the other partner has the money and wants to be more passive.

I chose to keep my investments as solo deals unless it really provides an obvious benefit. If I can't immediately see the benefit, it may not be the right time.

If you choose a partnership, make sure to use a lawyer experienced in structuring partnerships to write up your agreement. This is not an area to try and save money on. Good Luck!