Many investors do bigger deals by teaming up. One partner brings the money, another brings the deal, the experience or the work. A good partnership multiplies what each person can do alone. A bad one ends friendships and lawsuits. The difference is almost always clarity up front.

Common ways partners split roles

• Money partner and operating partner: one funds the purchase and the other finds, manages and sells the property
• Two active partners: both contribute work and money
• Builder and landowner: one provides the lot and the other builds
• Seller and buyer working together: sometimes through creative terms, with an attorney guiding the structure

What to agree on in writing

• Who contributes what, in cash, work and credit
• How profits and losses are split, and when
• Who makes decisions and who signs
• How costs and overruns are handled
• What happens if someone wants out, dies or stops performing
• How the deal ends: sale, refinance or hold

Use a proper legal structure

Many partners hold property through an LLC with a written operating agreement. If you raise money from people who are not actively involved, securities laws may apply, so talk with an attorney before you pitch investors. Your tax advisor can explain how the structure affects you.

Do your homework on the partner

Ask for references and past deals, check public records and talk to people who have worked with them. A written agreement helps, but trust still matters.

How we help

We have done deals ourselves and with others, and we can help you evaluate a property and the numbers. If you want to partner with us on a specific deal, we put it in writing and with an attorney. We work across Atlanta, Brookhaven, Decatur, Duluth, Ellenwood, Griffin, Hampton, Lawrenceville, Lilburn, Locust Grove, McDonough, Norcross, Snellville, Stockbridge, Stone Mountain and Tucker.

Nil Patel is a licensed Georgia real estate salesperson with Keller Williams Realty Atlanta Partners. This page is general information, not legal, tax or financial advice, and nothing here is a commitment to lend. Talk to a lender and a real estate attorney about your own situation. Investing involves risk, and past results do not guarantee future results. If Nil, a team member or an affiliate wants to buy a property directly, that buyer will say so in writing before you sign.