Real Estate Partnerships The pickles you can get in!

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Real Estate Partnerships: The pickles you can get in!:

Real Estate Partnerships: The pickles you can get in !


I’ve seen a lot of people investing in real estate with a partner. That partner can be your relative, your roommate, your friend, your colleague, your BFF anybody. Some of these partnerships prosper. But I’ve also seen that after the investment, some of the partnership going haywire and the relationship drowning. The real reason is nobody is weighing the pros and cons of investing together. That leads to a healthy partnership.


There is an interesting way to partner up called as limited liability partnerships. In limited liability partnerships you can expect more investment money from your partner. Also you can be sure that your assets will be shielded against litigations and other actions. If your partner decides to play the fraud and cheat you, you’re protected then also. The icing on the cake is that if your partner cheats you, he is the one facing the legal action and not you (as in the usual case). So you’re pretty confident you can get into the partnership, survive? Easy there cowboy! We got you covered with some tips that’ll save you.


• Understand: Yep! The important rule where you sit through hours of discussion to understand your partners and more importantly your own goals. The keyword you’re looking for is mindset and unless you and your partner are not on the same boat, this won’t work chief! • Risk vs. Reward: You heard them right. There is this little thing called risk vs. reward ratio and make sure you talk that out, whether it’s a 50:50 or there are majority and minority stakes etc… • Number of partners : This is not the place where you can shout the more the merrier Johnny boy! This involves money and more partners mean less profit, also less risk. According to law there should be minimum 2 and maximum 20 in a partnership. • Role: Everyone should have their roles and responsibilities clearly defined. This is not the flea market and you can’t get away with something.


Some of the advantages of partnerships are easy to form, risk and responsibility is split, less maintenance and complications. But the disadvantages are disagreements, unregulated and unlimited liability and taxation based on profit share.

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