Partnership - Posted by JR

Posted by John Merchant on January 24, 2008 at 13:42:58:


Partnership - Posted by JR

Posted by JR on January 24, 2008 at 10:14:50:

I was interested in flipping a house soon and was going to go in on it by myself or with a partner. Now 2 other guys want to get in on the flip as well. Would it be a good idea for me to go in on it with all 4 of us or just me and one other partner?

Re: Partnership - Posted by Stew(NE)

Posted by Stew(NE) on January 26, 2008 at 10:15:49:

Man, michaela, hit it on the nose as usual. One small favor, can you go to my site and fill out the authorization to release loan info, so I can get started on the shortsale early for you. Hee-hee I am seeing more shortsale business as the results of partnerships. As the partners increase the chances for profit decreases. In case you missed it, don’t fill out the form that was me being sarcastic.

Re: Partnership - Posted by tampasteph

Posted by tampasteph on January 24, 2008 at 16:45:08:

I echo what the rest said: Be wary of partnerships. Especially with friends/family.

I learned the hard way and lost one of my best friends over a deal we did together.

If you do decide to go ahead and use a partner, get EVERYTHING in writing.


Re: Partnership - Posted by Rich-CA

Posted by Rich-CA on January 24, 2008 at 16:21:23:

Partnerships should be looked at as a last resort. Like a marriage where you knew the other person for 3 weeks, lots of unpleasant stuff erupts after some time elbow to elbow in the trenches. Especially when things go wrong - and they will. If you can do this by yourself, do so. if you want to help out others invest as well, do so but make it so they sink or swim on the basis of their own effort (or lack of) without the resulting debt, white elephant, or other problem becoming your problem because you are the most solvent.

Why? - Posted by michaela-CA

Posted by michaela-CA on January 24, 2008 at 10:36:57:

What is it that everyone brings to the table that you can’t get alone? Partnerships can be extremely difficult and the more partners the more potential problems and the less profit for each person.

Only consider a partnership if each one brings soemthing to the table that you can’t get otherwise and even then, avoid it, if you can.


Correcto !! - Posted by Jimmy

Posted by Jimmy on January 24, 2008 at 12:31:29:

never take on a partner unless there is a compelling reason to do so. and when you think you have a compelling reason, think harder. figure out a way to engage the services of the would-be partner in a capacity other than ownership. (let them be a lender or a contractor or whatever)