Investing with a Partner

[Charlie Morales]

Goodmorning!! Hope everyone is doing well! I wanted to come on here to ask, has anyone done a partnership to buy a rental property? If you did, did you like? What didn't you like? What mistakes did you do? Would you do it again? I would love to hear your testimonials because I plan on partnering on an out of state property. (Investing in Arlington, TX)

[Daniel Brewer]

I'm currently in a partnership on a property. I'd say the most important thing is communication. Before you go into the partnership, outline the entire process from start to finish in a document. Literally, everything from the first day until you finish. You want to have a set plan for how you are going to do everything down to every last detail.

After that document is created, discuss with your partner the roles each of you are going to have. Who is going to manage the rehab? Who is going to talk to the realtors? Who is going to identify the target areas? Have the entire process written out and jobs assigned to both you and your partner. This will make sure all expectations are aligned and if someone isn't holding up their end of the bargain it'll show.

And then obviously you'll want to find a great accountant (to help you structure the business) and then a great RE lawyer to write the operating agreement. These are also extremely important steps. 

 Make sure everything is as clear as possible!