Partnership

Viewing 5 posts - 1 through 5 (of 5 total)

Balihai
Participant
@balihai
Join Date: 2004
Post Count: 8
December 20, 2004 - 2:51 am
I with my two friends plan to invest in positive cash flow returns properties. Can someone tell me what the advantages and the disadvantages in a partnership? Tx, guyz.
holdencommodore
Member
@holdencommodore
Join Date: 2003
Post Count: 88
December 20, 2004 - 1:53 pm
https://www.propertyinvesting.com/forum/topic/14443.html
I just posted a reply on this link, it should help you.
Essentially partnerships have unlimited liabilities – i.e. – you would be liable for your mate’s actions if he went out and bought himself a new Ferrari in the partnership name. They’re VERY RISKY!
Corporations offer limited liablity and would be a much better alternative. Only thing is that companies are taxed at 30%, which may be higher than you would individually be taxed if you had a partnership structure. Personally, I’d be willing to pay that premium. Everyone can be bought/tempted for a price, and I wouldn’t want to be shafted and paying off my ‘friends’ debt for the rest of my life.
It’s ultimately up to you, I’m not saying your friend isnt trustworthy or honest, but I wouldnt want to find out the expensive way![tongue]
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
PropertyGuru
Participant
@propertyguru
Join Date: 2003
Post Count: 1,502
December 21, 2004 - 3:28 am
I think Partnership is key to any business is the world. if you feel you and your friends thinking in the same direction go for it.
Get right structure from the start. may be trust and company or just trust talk to some good accountant.
Good luck!
Cheers
PropertyGuRu [sultan]
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Robbie B
Member
@robbie-b
Join Date: 2004
Post Count: 2,493
December 21, 2004 - 3:45 pm
I would also clearly define each partner’s role so there is less chance of disagreements.
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Kiwi-Fulla
Member
@kiwi-fulla
Join Date: 2002
Post Count: 371
December 22, 2004 - 10:23 pm
Hey there,
Depends on what you are trying to achieve….
What I normally do is set up a separate JV agreement for each transaction then you can negotiate all your terms and clearly define your role in each transaction. as you get better at what ever it is you do… (funding supply, negotiator, buyer and seller etc) you can clearly define your participation in each agreement, percentages for returns. this limits your risk and gives you more flexibity each transaction.