Best way to partner with someone?

[Jennifer Nguyen]

I'm new to investing and looking to partner with someone who has experience. If i can offer value by having the funds, what's the best and fairest way to structure a deal with a partner?

[Ron Flatt]

First and foremost, you need to know your partner.  Many out there that claim a lot but cannot produce.  Here in Texas we say, "They are all hat and no Cattle!".  

Next you need to know if you want to loan the money, and you know exactly what you are getting back or do you want to joint venture on the property (partner up) so if the deal loses money you lose, if it makes money you do.  And finally there is a combination on the two.  

I had one partner who put up the whole downpayment on the loan, we purchased a $26,000 property, He put up $10K, and we borrowed 18K from my bank, with my credit. We used my credit cards and kept track of labor cost. I paid him 6% interest on his $10K, I was paid for my labor cost, the payoff on my Lowes and HomeDepot card and paid off the note at the bank. It was a small project but he received His 10K back and 300 interest and received half of the profits after all expenses which was another $2500. So in about 7 months his 10k became , $12,800... For full disclosure... I am the one who bought the property and still have it for a rental, but he did not want to wait for it to sell on the MLS. So I cashed him out removing his name from the deed and getting a new loan at the bank for it. He wants to do another but I have not found one to get in that cheap since. I offered to let him in on a 20 unit but that was more cash than he could swing and it would be a 3-5 year hold. He wants another in and out.

If you are interested in Texas Property keep in touch,  we would need some time to make sure that we were on the same thoughts.   

DO NOT INVEST WITH SOMEONE, IF THEY GUARANTEE A PROFIT....  things go wrong, if they sugar coat it and say that every deal goes smoothly I would run away from that individual.  Always be cautious.  

Good luck, Hope you connect with me or follow me on biggerpockets. 

Hope that helps