Full Time Investor · Toronto, Ontario · Member since 2015 · 14 posts · 1 vote
Hi all,
What do you think about this:
If you had a $300k mortgage that you had to port or else you would pay a hefty fee of $17,000, would you be better off paying the fee and getting new mortgages at lower interest in smaller deals on your own, or would it be better to JV with someone who will not put money in on a five year deal but take care of the management role and split revenue? I guess the question really is about, should you work with someone who has a deal but whom you don't have a history with and who won't put money in (because of course there are investors lined up who won't ask for that)? Would it really be better to pay that crazy fee and go it alone?
I'm not sure if I am following the 17,000$ fee thing. However, I will say 3 days ago I had a conversation with a person who partnered up w/ a so called "investors/realtor" to flip a house. So far they are 6 months overdue, had to install a new septic (poof, profit is gone), and the "investor" owes the other partner 75k for her half of the deal......Do you think it will end well? Never partner up with someone you do not know. Its only asking for trouble.
On the contrary, partnerships can be great. I personally have partnered with several different people and have had success each time. My advice, make sure the roles are clearly spelled out in an agreement that is signed by all parties involved. It helps people from overstepping there boundaries.
I agree @Christian Bors , in my experience with other business ventures it is best not to partner with people you don't know. It's a real roll of the dice. This may be REI and that is new to me but business is business.