Partnership question - Posted by Anthony

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.

Partnership question - Posted by Anthony

Posted by Anthony on August 03, 1999 at 12:39:56:

I am involved in strickly rentals right now. Some of my friends like what i am doing and are interested in working together to aquire more with the theory of more legs and eyes move faster. My questions are does anyone here have an arrangement like this? What are the stipulations? Can a group of people get more mortgages that just an individual wanting as many rentals as possible?

Any ideas or opinions welcome.