How did you structure your first partnership?

[Liam Morris]

Hey all,

I'd be interested to learn how some of you structured your first few partnerships.  I know there are many good ways to do it, and so I'm not looking for the perfect/right answer, but rather some ideas of what worked for others (or didn't work).

A little bit of context:

I am new to REI and have begun taking steps toward my first investment. However, I'm in the same boat as many people who are bringing sweat equity to the table in hopes of finding someone with finances to invest.

As I've been telling friends/family about our plans, several of them have said to let them know when we are ready to pull the trigger because they would be seriously interested in investing with us.  I haven't discussed details or numbers with any of them because I want to have a plan/proposal first.  However, I would estimate these friends are likely to have between $10k and $40k to invest.

Our market is very stable, and my target neighborhood has an average sale price around $150,000. We will definitely crunch the numbers as we get closer to closing on a deal, but the very general ballpark numbers are to find a SFH with an ARV of 140-150k, 20-25k ERC for a purchase price of 70k or less.

Assets we will bring to the partnership include:

- We will bring the deal
- We have the time and ablity to manage the project
- We have relationships with local, trustworthy contractors
- We hold a RE License to reduce closing fees and to market the property

If you were in our shoes?  How would you go about it?

Thanks in advance!