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Investing with a partner to buy real estate can be beneficial to both. You must take steps to ensure that the relationship will endure, however, so you need to develop a plan for the partnership from the initial investment through the exit strategy. Additionally, it has to be the right fit for you. While you are not getting married, you’ll be spending a lot of time with this person, and you will need to trust them with your future, which they will hold in their hands through your investment partnership.
Before you jump into an informal partnership and learn the hard way about the critical considerations of this endeavor, we will explore five tips for investment partnerships in Massachusetts.
Agreements
Our first tip for investment partnerships in Massachusetts is to set up formal agreements for the business structure of the investment business. You will want to select a business form such as a Limited Liability Company (LLC) that is best for your goals and protects your investments from any problem a partner may face in their personal lives. Often, one partner holds 51 percent ownership of the investment business and agrees in advance to contribute more for this advantageous positioning. As this is a business relationship and not a marriage, try to avoid a 50/50 split, which can cause severe issues if there is a dispute. You should also decide on which method of ownership you will select through an LLC. If one partner should die, the other partner will own the property. If you should purchase property as a tenancy in common, another person can inherit the portion of the investment business upon a partner’s passing.
Be Fair
While you share in the management of your real estate investment business and the profits, the partnership may not be equal, but that does not mean you can’t play fair. Partners may put in different contributions of their money, time, or physical work. They may withdraw income from the business in differing degrees as well. For successful investment partnerships in Massachusetts, you should seek a fair balance between what is being given and taken by each partner so that both feel equally valued. Suppose one partner funds the projects while another does all of the footwork. Having agreed beforehand about what benefits each will gain from their efforts, the motivation and focus on the business will remain strong.
About Your Partner
Before entering into investment partnerships in Massachusetts, you must know your partner. Additionally, your personalities must work together. You may wish to do a small project together as a trial run before entering the partnership to ensure things are as they seem. You’ll share your financial future and reputation with this person. Partners with similar values and work ethic are much more likely to have a successful investment partnership. It is also crucial that there is complete transparency about personal finances and open communication about personal goals. They should be willing to sign a written agreement with each partner’s roles and responsibilities outlined. The contract should detail a system that will measure performance and outcomes from each partner’s contributions.
Skills
By building on existing skillsets each partner brings to investment partnerships in Massachusetts, you will know you can rely on your partner. While you may not always understand what your partner is doing, you must keep an open mind to their ideas and changes they may feel necessary to adjust the business for new goals. It is helpful to have regularly scheduled meetings to share progress, problems and help each other whenever possible. The right partner will complement each other’s strengths and cover the areas where expertise is lacking. As a side benefit to helping each other, the partners will gain new experience and build on their skillsets.
Exit Strategy
Great investment partnerships in Massachusetts begin with determining and outlining in the contract how the partnership will dissolve. It is better to openly discuss how you will resolve disputes and eventually how you plan to dissolve the partnership due to death or a parting of ways. While it can be uncomfortable to confront the possibilities of what can go wrong with a partnership, it is best to set everything out on the table and use a lawyer to draw up a legal agreement. Otherwise, you may end up paying legal fees for a long, drawn-out dispute because the partners did not take proper steps to set up channels of open communication, realistic expectations and establish actions for resolving any disagreements.
Align on Risk Tolerance and Investment Goals
Every investor brings a unique perspective to the table, especially when it comes to risk. Before forming a partnership, it’s crucial to have an honest conversation about your appetite for risk and the types of properties you want to pursue—whether it’s flipping distressed homes, holding multi-family units for passive income, or investing in mixed-use developments. If one partner is looking for quick wins and the other is thinking long-term legacy wealth, tensions can easily arise. Try using resources like the BiggerPockets investment strategy guides or Mass.gov’s real estate ownership tips to help align your expectations and define shared objectives from the start.
Understand Financing Options for Partnerships
Securing financing as a partnership can be more complex than applying as an individual. Lenders may require credit checks and financial statements from both parties, and not all mortgage products are partnership-friendly. Some investors opt for portfolio loans or joint venture agreements where one partner brings the capital and the other brings the sweat equity. Understanding how your credit, income, and assets will be evaluated can help prevent surprises. For a clear overview of loan types and eligibility criteria, check the Consumer Financial Protection Bureau or consult with a local mortgage advisor who has experience with investment partnerships.
Keep Communication Open and Document Everything
No matter how aligned you and your partner are in the beginning, things can shift over time. Life happens—people change jobs, priorities shift, or unexpected personal issues arise. That’s why it’s important to maintain consistent communication and document everything. Create a shared project management folder with timelines, responsibilities, receipts, and meeting notes. Tools like Google Workspace or Trello can help keep everything organized. This builds trust, ensures accountability, and gives you both a clear reference point if questions or disagreements come up later.
We Work With Local Partners Across Massachusetts
At Ephesus LLC, we’ve helped partners and investment teams successfully purchase properties across Boston, Revere, Malden, Everett, Chelsea, Lynn, and many other Massachusetts communities. Whether you’re buying your first duplex together or scaling your portfolio, we bring experience, transparency, and an active inventory of off-market deals to help you move forward. We understand the importance of partnership—not just between you and your investor, but with the professionals you trust to guide you. Call (617) 340-6527 or contact us for a free, confidential consultation. Let’s talk about how to structure a real estate partnership that actually works—for you.
Partner with us at Ephesus LLC ! The professional investors at Ephesus LLC are the perfect fit! And Ephesus LLC has a steady inventory of the best investment properties available! Ephesus LLC makes it easy. Why not get started on the path to a successful real estate investment business today! Send us a message or call Ephesus LLC at (617) 340-6527 to learn more.