Are partnerships worth it on SFH?

[Beau Pearson]

I will try to make this brief. So there will be a lot of details left out. A very experienced BRRRR strategist in the Kansas City area suggested him and I form a partnership. I am from Florida and like the market. The short version is he would handle managing the rehab and contractors etc, I would make an initial loan to the company and acquire both the short term money and long term refinancing money, as I can still get the conventional since I’m under my 10 limit. All equity and cash flow is 50/50. And whatever I make as a loan to company would be paid out first. The price range is like 60-70 all in numbers with ARV 85-95k. Cash flow maybe 125-200 per. My question is, is this worth it? Seems I’ll be taking on 6-700k in debt for not that much cash flow. There will be a lot of equity build up though. Thoughts?!???

[Jessica Zolotorofe]

I guess the question is, could you do it on your own? Find the properties, do the rehab, manage the project? Do you need his expertise to make the same return? If so, it's worth it. Also, if you have a lawyer draft up partnership documents for the first deal, next time you have a similar opportunity you already know what you're getting into and you already have a template for the legal docs.