Creating partnerships for real estate investing.

[Greg Banheh]

Hi there BP community,

I have two possible people that would like to partner up with and go into some investment properties. My question is what recommendations as far as terms within the partnership or how the partnership should be formed do you have? When purchasing an investment property, should we form an LLC with us as members prior to purchasing a property? Or what other strategies are there to consider to avoid any potential problems?

Thank you

Greg B 

[Greg Banheh]

@David Boley

Hi, yes we went ahead with the partnership and formed a LLC with us as members in the entity. We discussed roles within the partnership such as day to day and managing operations. We made sure we discussed in detail what our expectations were and assigned tasks so that we would be all in the same page. Definitely laying everything out and being transparent made the decision easier. Hope that helps!