In my real estate holdings, I have several partnerships. What seemed like a good idea at the time has inevitable become a bad, sucky one!
Partnerships look great from the outside....a few partners on several different projects can frankly double your holdings. Want a place in Mexico? Scrape together the funds and find the project. But, a place in Mexico AND Tahoe? Oh la la...so much more sexy.....bragging rights double....potential to profit a bit more....balancing your portfolio more attractive.
But, alas, the human factor creeps in. Beware. There will always be difficulties with the financial end. Presently, a very nice family with which we are partners on several projects has grown horns. We are trying to sort our financial contributions out to see where we stand before refi-ing or divesting of a property....somehow I have records....they are too busy to get theirs together. I put in an extra amount to pay down debt...but where has this gone on the spreadsheet??
The furious e-mails and backtracking on receipts is time consuming and aggravating. You know that tweak you get in your neck muscle when you are just anticipating conflict....yeah, it's there taut and tight. Off to the masseuase before round four....more on partners later.