Money Partner - Posted by EB (Fl)

Posted by Lyal on September 25, 2003 at 10:48:33:

Tons of partner horror stories on these boards if you check the archives. You don’t really want someone meddling and making decisions in a business they don’t understand.
Why not just take them on as an investor. See what kind of return they’d like. If it’s 10% or 12% fine, you invest the money and make 100% and pay them out of your return. Also might consider selling them the notes you create. You service the note and they just collect interest.

Money Partner - Posted by EB (Fl)

Posted by EB (Fl) on September 25, 2003 at 08:11:51:

If someone told you they would partner with you, putting up $50,000, how would you structure a partnership? Would the money partner get all the interest and half the income? The second partner would be responsible for finding homes, doing lease/options or Lonnie deals, etc.

Thanks for your input!


Makes wife beatings look tame - Posted by Philip

Posted by Philip on September 25, 2003 at 20:18:54:

I wouldn’t take on a partner for any reason. In any business. I know I would go to prison for homicide. And I am pretty non-violent. This little account gives one example why I feel in this manner.

My brother in law was a half partner in a successful automotive repair shop. Fairly good size operation. He is a hayseed and didn’t like the rush. But, he was the glue(mechanic)that held the real key to the business. He and his partner were best freinds.

My brother in law was a elder at our church. He had put his “rough and rowdy past behind him”.
Until the pressure of the business and his partner’s greed reared their ugly head.
Then my church elder/Brother in law, beat up his partner and was about ready to choke him when he came to his senses.

He sold his half. Moved back to the country and set up shop in his hometown of 1,000 people, and repented of his actions. He is ok now. His partner got control of the business, a few minor abrasions, and a badly chafed neck…and is still having ulcers over the business. At least he isn’t dead though.

Lyle is right. Partnerships can be nightmares. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on September 25, 2003 at 11:29:56:

Marriage is kind of a partnership. Take a look at the divorce rate and listen to some of the THOUSANDS of horror stories about the causes of these divorces.

General partnerships are no better. You usually have UNLIMITED liability for the actions of your partner taken during the course and scope of partnership activities. The operative word here is UNLIMITED.

I do a lot of joint venture deals with others to avoid this problem. My way isn’t the best though, when done alone. We still want the “shell” protection of corps, LLCs etc, so we each have our own corp. etc that jvs with the other’s corp etc.

It works well for me because I have a couple of lifelong associates that I can trust. We have lots of oral contracts betwen us too. This is a case of do as I say and not as I do. Others should NOT follow in these footsteps, as to working without written agreements.

Fortunately my business relationships have been more stable than my amourous ones. :~)

Regards, doc