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Category: Business Strategies Current Grade: A- Total Views: 737 Member Comments: 0 |
Posted on: 02/09/2008 Posted by: Ryan Ely Blog Points: 91 View all blogs >> |
Partnerships can be a good decision for investors. Partnerships can be used for many different things. Do you have time, education or money, then you are a candidate to partner w/ someone w/ different skills. You have money, but no time or education... there are allot of investors who have time and knowhow, but don't have money. If you have all 3- money, time and know how, then you don't want a partner, but most of us don't have all 3, Partnerships are just one technique for buying houses.
Be careful who you partner with, a friend is not worth losing. If you are the money side of the partnership, you want to pick someone that is experienced, w/ detailed record keeping, fair and experienced. If you are the manager of the property you want a partner who has money to work with, is hands off, honest, fair, and easy-going. They must trust you to do your part. Make it a legal partnership w/ an agreement. Details of how the partnership will work, should be worked out, go through your plans together, go through worse case scenarios and make sure that all of your solutions are worked out beforehand. Use LLCs for your partnership. Having an attorney write the operating agreement sign 2 copies. One goes to you and one to your partner. Talk to an attorney before you start a partnership.
