Partnerships

[Justin Sheley]

As a newbie real estate investor I was hoping you guys could shed some light of the benefits of having a partner when purchasing properties. I have been faithfully listening to the podcasts and I know @Brandon Turner is a big fan of partnerships, however I have one basic concern.

- With both my wife and I being small private school teachers I would consider myself a "hustler" to get the properties I own. We really have to pinch every spare dollar in order to make this dream a reality, and we are really just starting out as we close in two weeks on our second "house hacked" multifamily. I am very thankful for a great experienced mentor here in Rockford who has helped me created a strategy for the area, but I am struggling to understand if I should be looking to use a partner this early on in my investment portfolio. If I am able to purchase a SFR for 40k that cash flows $400 a month with a down payment of $8,000 why should I bring in a 50/50 partner so that each of our down payment is only $4,000 but my monthly cash flow is $200. I don't ask this out of a spirit of pride as if I couldn't use a partner, but with the limited number of conventional loans I can use, is it really wise to split cash flow on this deals? Or is it better to use partnerships when I get to the point of needing creative financing to get a deal.

I appreciate any feedback and advice you have to give. After I close on our multi-family on the 28th I am hoping to buy two single family properties in Rockford, IL this summer. I just want to make sure I am understanding all my options and making the best decisions since I am just getting into the game.

Thank You,

Justin Sheley