Structuring a Partnership

[Filip Reutov]

My buddy and I have recently gotten into residential RE in Alaska where we currently live. We both have one property each, and looking for more. The prices in Alaska are pretty inflated, so we’re looking into partnering and investing out of state. Just not sure how we should go about structuring the partnership, could you guys let me know how you like to put your partnerships together? Or point me to your favorite resource on partnerships? Greatly appreciated!

[Brandi Croom]

@Jamie Rose

Here's the comparison to Anchorage and where I currently own rentals and I've also flipped houses in these area as well.

Appreciation from 2018- YTD since I think a 3 year trend is more telling than just a single year
Anchorage, AK is 13.84%, August 2020 vs August 2021 is 1.83% appreciation
Redmond, OR is 63.63%, August 2020 vs August 2021 is 26.7% appreciation
Prineville, OR is 53.75%, 2nd quarter 2020 vs 2nd quarter 2021 is 47.6% appreciation

Rents- I can buy something for $150-200K renovate it and rent for $1895 or I have a property I bought for $329K new construction in 2017 that rents for $2350 and is now worth $489K. Cash flow is $550-750 per unit I own.

Anchorage property tax rate varies but most of Anchorage is at 1.8% and where I have rentals in Oregon is closer to 1% or less and your tax bill cannot go up more than 3% per year.