what are the logistics around setting up a partnership?

[Michele Ling]

Hi, I've come across a property that I think would be a great investment, but I would need to find partners in order to make it work. It got me wondering about the logistics around establishing a partnership, specifically the sequence of events. Do people identify partners, set up an LLC (which could take weeks), find a property and then create the operating agreement to determine ownership? This approach seems like there could be missed opportunities as the partners wait for the LLC to be created. Or do people find a property, identify partners and then make an offer? This approach though seems to leave very little time to get the partnership set up since there's a small window of time between finding a property and making an offer on it. Please shed some light on the process. Thanks.

[Assaf Furman]

@Michele Ling

Real estate revolves around people rather than properties. IMO you should first identify a trustworthy person you want to partner with, set up an agreement that reflects your expectations from the partnership, the strategy you would like to implement and the financials (expenses and revenue). That will help you understand if you need an entity and what type would be most appropriate, as well as understand what kind of properties (or deals) to look for.