It's whatever can be agreed to.Know this going in, in the minds of partners that perform work performing tasks, a partnership is never fair, one will feel like they are doing more than another, but if that's what the agreement spells out, you agreed, it's fair. :)

You should have a partnership account for the rental, should be filing a partnership tax return.

I am just now starting to research the Chicago multifamily market and hope to be pulling the trigger on my first property about that time.Hope the meetings go well until then!

Be sure and reach out if you have any questions on making the best use of the site ~I have had a great deal of success building some great relationships and partnerships thanks to BP.

There was loads of good deals...now they are really far and few between, I'm in no hurry and if the right deal comes along I can trigger but in the meantime small fry like me are going to sit back and wait for more inventory...come on banks, you couldn't have sold everything to blackrock!!!!!!

It will have to be behind the other loan. (2nd, if a loan already exists.)Do your relatives own it in a partnership?

Your 65K house may not be at market, but it's the cost of acquisition as well, so legally you're at 65K without drapes I guess.Nothing says you can't get a good deal.I'm totally aware of how all this works, how investors or dealers acquire a property and borrow more than what it's original purchase price was or at full value showing higher values based on repairs made or other comparable properties, how partnerships can be formed, how interests can be pledged and the justifications given, so I won't go down that long road either.I'd expect you to stick by your opinion, I've never known you to admit even being slightly off on your opinion since I've been here, that's not saying you're right, but I understand that when your business model is touched upon you are very protective of the basis of operations and that's fine.What I stated stands in court, gurus have been nailed over such claims.

One suggestion is that you could alternate who takes the loan, then make your partnership agreement state that both are responsible, and have heavy equity dilution for someone who doesn't pay their share (or even equity dilution of all deals to tie everything together).

I think the #1 reason this strategy works so well is the ability to pull the trigger quick on a good flip and do a quick closing.

I've seen some deals in Clinton, but none I'd pull the trigger on.Best of luck to you.