Have any of you formed a partnership or REIT with friends/family for investment purposes, namely real estate or in the stock market? I was wondering how it has worked out.
There is a group of us considering something like this. What if everyone cannot bring the same amount of capital to the table? Do you allow sweat equity to count? What have been the hang ups? What went well?
We are a pretty good group, we are not all 'best friends' but we have a lot of trust in each other. We would have spoken with another guy we know but we did not deem him trustworthy enough.
Any thoughts on this would be appreciated.
I have not formed one but I have talked to some of my friends about it.
My concerns would be what is everyone's investment strategy meaning how long partners plan to keep their investment in without wanting to pull out. The longer the better. Also what type of investments would the partnership want to invest in stocks, bonds, mutual funds, tech, pharma, financial? There are a lot thing strategies that could be done. Also the partners need to be in agreement about giving to partners more equity because they do more work. I think you really need to think how much work are they willing to put in compared to others.
My friends were thinking about starting an investment club where everybody would contribute the same amount each year and everyone would be an equal partner. We didn't want something that was very material to us individually because we wanted people to stay in for a while and it was meant to be more fun and a learning experience for the people involved. We were planning to have monthly meetings to discuss investments and each member was suppose to bring ideas.