Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

285
Posts
67
Votes
Leon Lee
  • Real Estate Investor
  • Atlanta, GA
67
Votes |
285
Posts

How to properly structure a partnership

Leon Lee
  • Real Estate Investor
  • Atlanta, GA
Posted

Dear BPers

I am considering to partner up with a friend on purchasing real estate properties. In general, I have perfect credit, low DTI ratio, but very busy with my full-time job. He, on the other hand, is relatively new to the local market, with poor credits but some cash. My question is what are the common ways to structure a partnership like this? One option that I am thinking is to purchase a turnkey property with both of our names on it, with him paying the downpayment, but using my credit to apply for the loan. We will be 50/50 on everything, including the ownership of the property, rental income and equity. Do you think this structure sound reasonable? What are pros and cons for both of us? Do you have any better ways to form a partnership like this?

Thank you!

Lee

Loading replies...