Posted by John J on August 04, 1999 at 09:10:18:
I’ve had numerous partnerships over the years. The ones that have worked out well are those where we have separated investment and management responsibility. Right now I am the managing partner and my investor partners do not get involved in day-to-day operations - just major decisions like acquisitions, sales, refinancing, etc. I maxed out on the number of FNMA loans that I was eligible for so we bought many properties in their names and they applied for the mortgages and then quit-claimed the properties to the partnership.
You can not have two captains on such a ship. If your friends want to get actively involved, then my suggestion is for them to do their own deals. You guys can form a “club”, help each other out, and work together, but keep ownership seperate. I’ve seen too many partnerships - and friendships - go sour over disagreements about relatively minor operating issues.
Hope this helps, John J.