More Than 1 Partner - Good Idea Or Not?
Just curious if anyone has gone into real estate for a few partners? Is this a good idea or not? I have some good friends from College who would like to go in on a property and eventually do it full time. Is it wise to form an LLC with 4 people and do this? Our different backgrounds and skills lend themselves to a very good partnership. One guy is auditor/CPA, I'm architect, 2 are teachers and have the summers to devote to real estate and both are real handy.
What are your thoughts? Our rough business plan includes starting a company, first rehabbing and getting into developing.
I personally will not be in a partnership where I am not in ulimate control. The people I typically deal with have cash but no experience in investing. If these people are allowed to make too many choices they will lose their money, waste my time, and somehow I make it out as the badguy.
That said--I do know there are several people who "pool" their money to buy rental properties. They hire a manager and they all sit back to collect their checks. I have not seen anyone partner for anything more active with that many people but I am sure that it is possible.
GOOD LUCK