Starting Property Management Company in California, but....

[Jason C Wilkinson]

Hello everyone. I'm working with a friend who has many years as a Real Estate investor. We are considering starting our own property management company in California. Neither of us is a licensed broker however (required in California), so we are in discussions to possibly partner with a licensed broker so we can start the business. We will be managing the day to day and the broker will mostly be a 'silent partner'. I wanted to see if anyone has tried to structure a property management business this way. If so, what were some things that went well and what were some things that didn't go so great? Thanks.

[Michael Smythe]

Make sure you have a well-written partner agreement with strict controls/limitations placed on any/all silent partners.

For active partners, you should have specific responsibilities laid out with penalties for not performing them.