I have a question regarding partnerships. I have two friends that are interested in REI. But I’d like to ask myself and them some questions to consider when forming a partnership. So far these are the questions I have came up with.
Why are you interested in Real Estate Investing?
What are your short term and long term goals?
What do you, personally, bring to the business?
Leadership: Who is the leader and why? Should there be a leader?
Exit: What happens when someone wants to leave the partnership? Remember, we will be earning monthly cash flow from the properties we buy for 30 years or more.
What resources do you have that will help us succeed?
Analyze this deal: We find a house that is asking $70K, the FMV is $100K, there are no repairs to be made and it rents out for $800 a month, the monthly mortgage payment is $300, is this a good deal? Why or why not?
What are some other questions that need to be asked?
Adam