If you are doing a rehab project that you intend to flip for one time profit, make sure that your partner is not looking for a project to hold as a rental for a monthly income stream. Your partner should also be someone with the same real estate investment strategy. You and your partner will be co-signing onto obligations of significant size and impact, so if you have any doubts as to whether your potential partner is trustworthy, move on and find another partner.

Foremost, you should only partner with a person that you trust 100%. Once you determine that your real estate investment strategy improves with the addition of a partner, the next step is to find the right partner (other than examining what they bring to the transaction).

Similarly, if you have the financials, but are a novice to rehabbing, a rehabber with significant experience and track record of successful flips is a great partner to team up with. It is the introduction of complementary skills or assets that makes a partner valuable in your real estate investment strategy.įor example, if you lack the financials that a lender requires, finding an investor with strong financials brings something to the transaction that you don’t already have. A partner that is in a similar financial situation AND has the same skills as you is really not bringing anything you need to the transaction. You need to do an honest, critical self-evaluation to determine where your strengths and weaknesses are, and what strengths you need in a partner.įor some, this means a partner will bring money needed for a transaction, for others, the partner brings a new set of skills. The only reason to partner with someone is if they bring something to the transaction that you do not have. Read on to learn if partnering is the right move for your real estate investment strategy. It is up to you to decide whether to go it alone or enter into a partnership agreement with someone.

Working with a partner can be the best decision you can make, or it can result in your worst nightmare if you do not choose wisely. If you proceed you should consider who your partner should be and how you should structure your real estate investment partnership agreement.

Partnerships have advantages and disadvantages that must be considered when you’re determining if you actually need a real estate partner. A Real Estate Investment Partnership is a legally binding agreement to operate a business together in the real estate investment industry.

Real estate investment agreement pdf