I was wondering if most of you are in partnerships with other investors, or if you go it alone? What is the benefit, or risks of both? I have a guy that wants to partner with me, but I am not sure I want that at this time.
RG
Howdy Kirss:
I am trying to put together partnerships. My credit scores are at 500 and this makes it hard for me to get good low rate long term financing. I have many properties with good cash flow even with 100% financing. The partners will get a good return on any money invested and for their risk. They can also get appreciation without management headaches.
It can be great for both parties or a horrible experience. The key is to know asap when things start going bad and try to correct the problem before it gets out of control. I like to do lower income property where the payments for example on a duplex are $250 per month and the rent is $550. Kind of hard to get into too much trouble with payments this low. Even 4 months past due is only $1000. If you can just keep one unit rented you should be able to make the payments.
Find someone you like as a person. I had one once that I hated and I paid a big price. I lost all my interests that I worked for years to accumulate.
LOL