Calling all experts...What are you views on PARTNERS???


A good friend and I are thinking about doing a couple of deals together. We both have something that we are bringing to the table. My credit score is around 660 and she has around 730. We both have income coming in, so I think it would be pretty easy for us to acquire property together. Here are my questions about using partners:

What are you views on acquiring rental property with partners?

Do you just split the cashflow 50/50 for the life of the loan?

How do you acquire rental propery with partners???

I understand how to do the shorter deals. We could just get the property sell and split the profit. I guess it is the long term deals that gets a little confusing. I am just wondering how most of the experts do it with partners. Please advise?!?!?

I recommend against partnering up on real estate deals for the following reasons:

  1. Good friends can become enemies pretty quickly in any kind of business deal. It starts out as “We are buddies and it will be fun to do this together.” It often ends ugly.

  2. If you are both on a mortgage then the entire mortgage counts as debt for both of you. I don’t even buy real estate with my wife on the note. We both have income. She documents, I buy stated income. I have a larger capacity to buy. She can do deals that I can’t do; vacant lots, doublewides, etc. By not encumbering both of us with any note, we are able to do more deals.

Hi Knbradley,

Excellent advice from Steve.

Very rarely does a partnership between friends work out. When it does it’s good, but when it doesn’t it’s very bad . . . meaning costly.

Should you decide to go forward, I would suggest you adopt the attitude that you will be willing to toast the friendship at the slightest hint of anything going astray. If you adopt that mindset and stick to it, you may be able to make the right decisions in the deal.

If you don’t, you will end up putting the friendship first which more often than not leads to failure in business.

Good luck.


Hello, Both of the other posts that you received are correct. Partnering on deals leads to disaster. I have business associates that consider us partners but, in the sense that we are working toward the same goals. They have their investments and I have mine. But, we help each other out the best we can.

If you feel that you need a partner for funding, then I suggest you borrow it from them. Both of your scores are good. You could work together but, keep your deals separate.