Hi,

We've been thinking through an idea and would love to have feedback on if you have time.

Is anybody has ever partned with the seller to purchase his property?

Thanks,

Mario & Sophie

Hey @Craig Jolly - you must be referring to biggerpockets.foreclosure.com, which is our partnership with Foreclosure.com's service.

It is one thing to make money; it is a completely different strategy to building wealth and a solid estate.Business partnership and financial considerations may include:Business Power Of AttorneyMedical Power Of AttorneyLiving WillWill or TrustLegal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.Moreover, every investment, partnership, and individual is unique.

As I have understood till yet, paying referral fees to a non real estate professional is illegal in the USA (in most of the states).If company (or an individual for the matter) from outside the US would like to form a referral partnership with an agent/broker in the US, would it also be termed illegal?

Has anyone had experience in a partnership?

You will need at least a few 100k to get started in triple net or you can also set up a partnership and pool funds to purchase.Your number of units and what rate you can get depends on how far these are spread out.49 units in one or two locations within a mile of each other is different from 49 units spread out in 5 or 10 miles with 15 locations.The time and logistics and economies of scale is ran differently.

We had a pretty solid monthSuccessfully refinanced a repositioned 11 unitClosed on two single family rentals and got the rehab startedPut 1 additional single family rental under contract.Built out 3 year plans for 2 new partnerships we started.Closing on my first property that I purchased as a flip and successfully executed with a nice profit(fingers crossed, property closes next week).

If you're not going to 'put a ring on it' you need a formal partnership agreement drawn up.Second, there's a reason that banks likes you to save up a downpayment.

,You net on the spread; however, your income and expenses are the gross amounts.If you are investing through a partnership, S-Corp or C-corp:The interest you pay on the loan is an expense to your business.

Just to be clear from the beginningOthers may disagree (especially the lawyers) that both are fine. so hopefully they chime inAlthough i would not lose any sleep over the LLC vs Promisory note, I'd spend a lot of time thinking about the roles of the partnership and how it will be win/win fully utilizing what each of you are best at.