Investing with multiple partners - Posted by Ryan

Posted by Mike W on October 29, 2004 at 17:09:39:

How many people?
How many properties?
How will you take title?

Who has the experience?
Who is putting up the CASH?
Who is putting up the credit?
What is the plan to make $$? Fix, sell, 1031 exchange? Remember a refi is NOT profit.

Which parties are passive, active?
Who has experience? some, none, or all.

The way I’ve done it is to have some be lenders, some be borrowers/owners, some be managers. This way everyone is protected by statute vs protected by agreement. Remember, its not the return ON investment that is critical for partners, its return OF investment.

You don’t need lawyers if the parties/partners have a meeting of the minds. You don’t need to file a partnership. Can you spell SEC? That get complicated. Thats for promoters wanting to raise capital from limited partners.

Lookup and learn all you can about ways to hold title. TIC, partnerships, joint-tenancy all have their place when used properly.

One more thing, is it family? I would NOT invest with family. I would make $$ and give it to family first.
If things go bad . . . well you have to fix it.

Have a plan, go get 'em!

Investing with multiple partners - Posted by Ryan

Posted by Ryan on October 29, 2004 at 16:34:01:

Are there any specific laws about multiple people investing together. Where would I research this?