Is it a good idea to invest alone?

[Arturo Borges]

Hey!

Just wanted your take on investing as a sole General Partner on multifamily deals. Maybe on smaller deals, where you can get the financing and raise the entire capital for the project.

[Max Gradowitz]

Partnerships can be tricky.  Sometimes people "partner" up with another person without a very detailed partnership agreement, or without one entirely.  Huge mistake.  Maybe one puts up more capital than the other in exchange for the other partner actively pursuing deals.  But then they later start disputing whether this is fair to the capital partner if the active partner starts slacking, or whether they should both equally contribute to losses if one contributed more capital than the other, etc.

I always recommend doing everything yourself.  If you partner up with a friend or family member and the partnership loses a bunch of money because of something you accidentally did, you can easily burn bridges with great people in your life.  If you partner up with a stranger, how well do you know and trust them?

If you partner up with someone, or multiple people, just make sure you have a good attorney draft up a partnership agreement that specifically fits your needs.  This is key.