Property Business - With or without a partner???

Mixer_2

I am thinking of going into property buying with a partner, he is a builder and is happy to do all the repairs etc etc and I will look after the management side of the properties i.e. rent/tax etc etc. The money side is taken care of we have enough for a couple of properties, but are just waiting to see what is happening with the prices.

I am just thinking of the advantages and disadvantages of going into this alone or with a partner?

Advantages are a lot of the building work is covered by him, twice the cash to buy places with.

Disadvantages are just that I would have a partner and not own the properties outright

Would I be best for tax reasons to set up a limited company? or to do it another way?

What do you all think?

vansboy

I don't like any form of 'partnerships' or arrangements.

I'd do it on my own, then employ the builder guy as your workforce.

If your contribution is, say ,the design or manager aspect, perhaps he could then employ YOU, on his development.

That way you both win!

VB

Robert_Sterling_3

I would think twice about going into a partnership and then decide not to unless it was with my wife or children.

deemy2004

I am thinking of going into property buying with a partner, he is a builder and is happy to do all the repairs etc etc and I will look after the management side of the properties i.e. rent/tax etc etc. The money side is taken care of we have enough for a couple of properties, but are just waiting to see what is happening with the prices.

I am just thinking of the advantages and disadvantages of going into this alone or with a partner?

Advantages are a lot of the building work is covered by him, twice the cash to buy places with.

Disadvantages are just that I would have a partner and not own the properties outright

Would I be best for tax reasons to set up a limited company? or to do it another way?

What do you all think?

The question is, do you both trust each other ?

If you do then clearly you both have your own area of expertise thus their will be a net benefit to the property business.

Just make sure to talk things over before you start so everything is in the clear.

Partnerships can work, as the risk and the work is spread out, obviously having a builder as a partner is a big plus in the property game ! and you can focus on the area that you are good at.

m00nie

As above says. if you trust each other, you could make a good partnership.

2 heads better than 1 springs to mind.

ok so the profit may not be as great as there are 2 partners in it together, but costs/workload etc are halfed so it all weighs up

good luck tho whatever you decide

deemy2004

Profits may be greater as likely turnover would also likely double.

deemy2004

You really do have a lot to talk about ! i.e. between yourselves.

For, believe me , your getting the better end of the deal

in one word - MAINTENANCE !

Say you have 10 properties, the guys goign to be runnign from property to property fixing bits and bobs that the tenants complain about, now the question is does he subcontract for particular jobs or not ? If not then he'l probably be doing much more work than you.

stuartlwilliams

Definitely setup a limited company and assign share allocations immediately. Also draw up contracts and agreed to responsibilities. Either one of you may change your mind in the future, so make sure you have get out conditions arranged. How do you decide when to sell a property, and then what to do with the proceeds? Reinvest or take profits.

Partnerships are great when they work.