How to set up an exit strategy from a real estate partnership

Partnerships are a great way to level up in real estate investing and development. The three components of a successful project requires an opportunity, experience and capital. Investors are often lacking in one or two of these components, so what do they do? They oftentimes partner with others who can bring these components to the table.

One critical error that a lot of people make is not structuring an exit strategy for that partnership. Things can be euphoric when you first enter a partnership but that relationship can change over time so you want to make sure you have a very well defined partner buyout plan to wind that partnership down in your operating agreement. Incidentally we made a presentation talking about this very subject and posted it below!

Let us know if you find it helpful and what other real estate related content you'd like to see!