I have never partnered with someone for a real estate deal before. I see a promising property, looked it over, but I’d like to get “silent” partners, and manage the property myself. I’ve considered this before but never followed through. I guess general thoughts? Where to start?

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Silent partner can become a pain in the butt if things don’t go well. So make sure you scrutinize people you are signing up as silent partners

Also, have roles and responsibilities clearly laid out on the Company agreement of the LLC. Meeting minutes documented.

If you are getting paid for running the business make sure that exact language is part of the agreement.

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Starting a real estate partnership can be a great way to leverage other people's capital and expertise to invest in a promising property. Here are some general thoughts and steps to consider when partnering with silent partners for a real estate deal, Manage the property, Formulate a solid business plan, Network and build relationships, Identify the right partners, Discuss partnership terms, Perform due diligence. My brother remember, partnering with silent investors can be a mutually beneficial arrangement, but it's vital to establish clear communication, trust, and transparency from the beginning. Seek professional guidance, conduct thorough due diligence, and surround yourself with a reliable team to increase your chances of success, and it will help you a lot.

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What is your plan, or what do you intend to offer these silent partners to gain their trust and offer some protection for their silent investment?

Well I have average costs for everything including income (and it looks like it could easily be increased for all units honestly). Some kind of legal agreement and of course a return from the rental income. I haven’t put a specific plan in place, it’s very preliminary. I’m just exploring the idea.

How much money are you looking for as an investment? What are you offering as a return? What are your contingency plans if things don’t go as expected?

These types of deals happen all the time, they’re just mostly behind closed doors. If you find the right property, offer good terms, and meet or exceed expectations, you’ll be able to find funding many times over!

That makes a lot of sense. I have some people I can count on for some things, but not for larger investments like RE. I wonder about an investment group for the same people to pool
Money over time. I feel like that could make things much easier.

State?

WI

Which state are you in? And how much of an investment?

I’m in Wisconsin. I’m looking around $200,000. Give or take.

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