Partnerships
This is hypothetical, but it seems like it would be the ideal partnership. It seems that too often in
RE investing there is one person slugging it out, spending an inordinate amount of time trying to
find deals and then after finding one that MIGHT work, they try to arrange financing, get a home
inspection etc. It seems there is a huge amount of wasted time. Woudn't the ideal situation be to
have one partner find the properties (possibly a RE agent so the commission is discounted), a
second partner to inspect them (a licensed contractor), a third partner to manage them (a full time
property manager who will put a rental he has an interest in high on the list for care)
etc.....possibly even an attorney as a 4th partner to save on the costs of incorporating.......is
anyone doing this or know of anyone who does?[ Edited by landpimp2000 on Date 02/11/2003 ]
Not quite sure what your question has to do with income taxes.
As a rental property investor, I have all of these people on my "team". I have a professional property manager who gets paid a management fee. I have a licensed real estate broker who finds properties and gets a commission on the sale. I have a licensed contractor I use to inspect my proposed purchases and then pay for the rehab work on any property I purchase.
I hire professional services when I need them, such as a lawyer. While you are at it, also add an accountant/bookkeeper to this team to take care of bookkeeping and assist with tax preparation.
Whether you incorporate or not, you still need all these skill sets on your team.