Best approach for a partnership

[Tatiana Conta]

Looking to purchase my first property as an investment with a friend, everything 50/50. It will both be our first. LLC or Joint Venture ?

[Michael Plaks]

Originally posted by @Tatiana Conta:

@Michael Plaks frustrated that everyone mentions the cons, I am well aware lol. However, RE investors thrive on partnerships. My opinion is that if everything is laid out accordingly in papers it should be fine.

We are both starting out in RE investing, and it is scary to do it all on your own. We both have the capital and are looking for each other’s support and knowledge. He is good with construction knowledge and I am good with documents and organizing.

To start our confidence we are looking to buy a cheap $60k house , rehabbing it. BRRRR approach.

It is far more frustrating and very costly when our warnings (that come from experience) come true. "It should be fine" is among the most famous last words. Triple so if you have a non-business relationship with this person.

Partnerships are not created for peer support to overcome fears. They are created for economic necessity or economic benefit reasons. You would be better off helping each other on your respective separate deals.