50/50 on an investment?

[Jack Randall]

I was wondering what you all here on BP could tell me about team or 50/50 investments in real estate such as a duplex, triplex or four pled preferably. For example: I am 19 and saving for the next two years so I could go out and look for my first deal. So I was thinking for my second deal, I can have a close friend save his money starting right now as well, and we will go 50/50 on my second deal. Has anybody done this? If so what problems did you face and what should I be aware of and/or prepare for? How does it work? Thank you!

[Jason Lint]

Hello @Jack Randall

50/50 deals can be great as long as you properly plan. You need to set up an entity and if that is an LLC, address any future problem you may encounter in your operating agreement. The operating agreement is your guide to handle the issues that may arise in your venture. Its better to address as many issues as possible on the front side of a partnership if you want to have a successful and profitable experience.