Partnering Up

[Dexter Wallace]

Hey BP,

So I've come to a point where I'm not ready to start looking at buying property. Now while I have the funds to get started, A friend of mine is also looking into purchasing and suggested a partnership. We both agree to signing an agreement to make things less complicated. He's had previous experience renting before. I think it may be good to split the risk. What are your thoughts are Investing Partnerships with Family or Friends?

Thanks in advance!

[Shawn R.]

@Dexter Wallace

I have partnered with people in the past and it has worked out great. I have also partnered with people and it turned into a nightmare. Partnering with friends and family is especially tricky in my book. It’s bad enough when a business venture goes array but losing a good friend or severing family ties is just a hard pill to swallow. In my experience both partners really have to be on the same page and realistic about the capabilities of each other and share the same goals. If you do decide to partner with someone make sure the expectations are clear and a good operating agreement that clearly spells out the responsibilities of each member is a MUST. I would recommend meeting with a good real estate attorney that can go over “what-if” scenarios and address any concerns. I know all this sounds a bit gloomy but you really do want to be well prepared if things don’t go as planned. I personally believe that having good partnerships can be a HUGE boost to any business when structured properly with the right people. Hope this helps!