Hi,
I have been investing lately on distressed mid to high priced properties. I would like to get involved in bigger deals but I dont have the money. Is partnership a good solution? My plan is to invite a few investors, put my money along side theirs and leverage the monies, buy distressed properties, manage them well then sell them off strategically. I would like to take on a leadership role in exchange for more interest.
Would it be difficult and at the same time expensive to get a professional indemnitiy insurance if I want to act as a project manager for the investment deals? Is insurance really necessary?
If I was to participate, then I would insist on a corporate entity being established with clear ground rules for entry, participation, dividend payments and exit strategies (whether voluntary, through deaht or disability or removal by others). To me, anything less would be too high a risk both financially and personally.As always, seek professional legal and accounting advice before entering into this type of arrangement as the costs of exiting may be too painful.
Robert H Bromwich
Moore Park Beach QLD
Australia
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