Key questions to ask yourself before you get involved in joining a partnership agreement are "is a real estate partnership a good way for you to invest?" You need to consider on whom your partners are and if they are financially established. Can you trust them? Just because they are family members, or your best friend from college, does not immediately qualify them as trustworthy. Very important to determine whether the investment you are doing makes sense or not?”
This partnership concept has been around from time, this is because people learned that pooling their money, resources, and skills would leverage them and reduce the level of their risks in the project. As well the larger the investment the stronger financial statements, greater return and more experience.
Very important to sort out many of the key issues when getting into a partnership are as follow:
- Will you make a return on your investment?
- How long will it take, the phase process?
- How comfortable are you with the level of risk?
- What is the time frame for this partnership?
- Exit Strategies, what are they?
- What are the tax ramifications?
- Are you going to be providing the majority of the partnership monies?
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