partnering with Family and Friends

[Nathan Williams]

A small group of friends and fam have been dancing with the idea of partnering up into a multi-family property deal together.  My wife and I are the most experienced of the bunch and it isnt much (just holding onto some low priced single-fam properties as rental income).  Everyone else never invested in real estate.

The arrangement we are hoping to have is one of equal footing where for example, if partner X put in 20% if the total cash then that partner receives 20% of all cash received.

My wife and I would not mind doing most of the heavy lifting for this potential partnership without receiving any additional benefit.  Also we are looking to invest out of state as our local market of SoCal would not have the returns we are after.

Im trying to get more details of how a partnership usually works in real estate so if someone can shed light on how their own partnerships operate that would be great!

also Im curious if it is possible to get a loan? I assume we'd setup a LLC but Im not sure how someone would get an investment loan as a freshly created LLC even if it has a large amount of funds in the bank.