Would you Ever Form A Partnership In Real Estate Business?

[Good-Guy]

There are various kinds of business and real estate business is also one kind of business where many people form partnerships. You can form partnership and buy a property and when you sell the property, you tend to share the profits equally. Forming a partnership in real estate business has many benefits. First of all, forming partnership in a real estate business offers opportunity to small investors to invest in big property. For example, if a property is worth $100,000, then small investors can invest $10,000 and buy that property. When the property sells off, each and every partner gets a huge profit.

Even though it was not possible for each partner to invest a huge sum of money, but forming partnership in the property has helped them to buy that property and make profits. There are many downsides of investing money in the form of partnerships. For example, I have seen many brothers fighting with each other over property issue and in rare cases, partners might need to equally suffer from loss. However, such issues are rare. So, what do you think? Do you think that forming a partnership in property business could bring benefits? Have you ever formed a partnership in real estate business? Let's discuss!

 

[Deleted member 28127]

What we say is common in business means the investors how to invest 10,000 $ each is partners in the work they are aiming to run with 100,000 $ real estate and will divide earning by 10 and run a commercial project with this real estate.

 

[Augusta]

it will depend on the situation at hand if there's a way I can buy the property alone then I will like this idea more. I don't just like any form of struggling with any body so I try to keep away from such but if it needs partnership and the person is good then I will go for it as well.

 

[Alexandoy]

My mother had a long stint with real estate as a freelance agent. She has several friends that she goes with in selling properties. The best thing with partnership is that one has the contact of the seller and the other has the contact for the buyer. It is a healthy partnership because both partners are helping in the sale. Sometimes there were 3 to 4 of them with each partner having a share of assistance whether it is from the connection of the buyer or from the seller. I saw them having fun even before getting a sale because they seemed to be friends. My mother enjoyed those days of selling and I think it is because of the partnership system.

 

[Caramelle]

A partnership as a form of organization is unstable because it can be easily dissolved. A simple disagreement may lead to the dissolution of the partnership. When a partner leaves or dies, that will require an accounting and valuation of all assets and liabilities of the partnership. Moreover, since each partner is acting as an agent for the other partners, they can be held liable for the other partners' actions. Being an unstable organization can be a big disadvantage in a property business where huge amounts are involved. The lack of stability could limit the potentials of the business. Instead of forming a partnership, some businesses go into joint ventures for special projects.​

 

[Setho]

When you look at the current real estate situation and you are comparing it with the economy of a lot of countries you will know that it is actually impossible for you to be able to invest in any real estate property that is reasonable without going into one partnership. I do not think I will even utilise all my funds even if I can afford it to buy a property and I think that going into a partnership is the best because you are actually going to be sharing the risk together and you guys are going to be sharing very valuable ideas with each other.

 

[eldavis]

It depends though, there are some persons who prefer going into partnership with others even when they have the resources to do it themselves, they still sould prefer partnership, personally I see no need going into partnership if I can do it myself. I would only go into any form of partnership when I have no other option or when it is really called for. Partnership is not something you rush into, you need to be sure you can actually work with the person before you think of going into the partnership.