The Pros & Cons of Investing with a Partner – Episode 986

You probably already know that real estate is the number one way to build wealth. But maybe you don’t quite have all of the resources you need to get started. For many investors, this is where a real estate partnership can come in.

On today’s show, we’re going to cover the pros and cons of investing in a partnership. We’ll discuss the finances, the legal terms, and how to determine if working with a partner is right for you. Click play to hear the pros and cons of investing with a partner!

More About This Show

There are three things you need to begin investing in real estate: people, money, and a deal. And if you’re missing one of those things, you’ll have to figure out a way to leverage the other resources you do have. And many times, that’s where a real estate partnership can come in. This can give you access to knowledge and experience, funding, the ability to grow your portfolio, and more. Let’s get into the pros and cons of a real estate partnership:

Pros:

1. Access to more resources. Whether it’s money, experience, skills, or expertise, working with a partner can give you a leg up in areas you might be lacking.
2. Easier to get approved for financing. More people = more credit scores, incomes, & backgrounds. You simply have more purchasing power when you team up with others.
3. Allows you to focus on your strengths. You don’t have to do it all, because you have a partner (or partners) who can pitch in with their unique strengths. You can also share workloads and responsibilities.
4. Can allow you to gain knowledge faster. If you’re partnering up with someone who has more experience, they may be able to share their tried and true strategies with you, and help you avoid common mistakes.
5. More perspectives. We all see things differently, and it can be helpful when there are multiple minds at work.

Cons:

1. Splitting the profits.
2. The possibility of conflicting ideas or strategies.
3. Lack of liquidity. It’s very likely that funds and equity will be tied up in your investment.
4. Can put strain on a relationship to add finances to the mix.
5. Things can go wrong quickly if you don’t set up the correct expectations, legal structure, etc.

All-in-all, I think working with a partner is generally a great strategy. It can be a smart way to get started as an investor, and it can open up a lot of doors faster than if you were doing things alone.

If you’re interested in investing with a partner or want to know how to find a partner, I want you to check out the full guide on my website.

Or if you already have a partner and you’re ready to take the first step toward buying an investment, you need to know about our partnership program at Morris Invest. We have tons of experience working with partners, and our full-service approach is built to help you and your partners get all the benefits you want out of your experience. Schedule a call today at morrisinvest.com

Episode Resources

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Guide: How to Buy Properties with Multiple Investors 
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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