The only real value in a partnership as stated is in buying power. And once the deal is closed that value is spent.

The fact is, any partnership like that is going to be subject to the different whims of the partners, and at some point those partners will change due to one or more of a plethora of reasons.

It really is no different than separate owners, so making it a divided interest at closing is IMO the wisest option. But by all means, make whatever mistakes you want to make. That is truly the second best way to learn.

Anyone who is married and owns a home has a partner in real estate.

Look at it that way.

Key in marriage is to picking a good partner. Same thing with buying land

while a true statement, that "partnership" rate of dissolution is over 50%. TheRancher has good advice. You never really truly know your partners personal and financial situation. My best friend and I were heading down that path. Were looking at a nice property in Callahan County for sale by the local game warden. While we could both afford it at the time together, there were differing long term views of urilization, and neither of us could put enough money in a trust to keep the land in case of job loss, death, etc. That is one burden we both decided we didn't need. We both look back today and say that was a good decision. I like Ranchers idea of joining up for buying power, and then having separate deeds of sale at close.

If you are gonna buy with a partner you get a financial statement showing assets.

You don't just take their word for it

There is more to it than what has been covered here.

It's not for everyone, but it can and does work

This one is intriguing to me for a couple of reasons as I am currently exploring the possibility of buying onto my friend's increasing ranch. Basically, he has purchased multiple parcels, riverside from a landowner in Haskell county and continues to do so. I will possibly be purchasing adjoining parcel or two to his growing and contiguous parcels. This arrangement I like since I will technically have my own land and he will have his with the gentleman's understanding that we will be able to hunt either our own or jointly, though the arrangement is not predicated on the joint hunting rights. Therefore, we will both own a "divided" interest if I understand Rancher's description?

sounds like in this scenario you will own your own land, but it will adjoin your friends for mutual hunting rights?

Sounds like a pretty good opportunity if you can swing it. Is he continuing to buy smaller parcels of land from the same landowner? Just buying the landowners ranch bit by bit?

Yes Bowhunter. With the thought that we will split/share some of those future purchases, owning our own contiguous parcels.

I can see the pros and cons both ways. I guess it just comes down to how you define value and everyone's will be different. Whether it is a mistake or not probably comes down to how good a job you do of finding like minded partners.

Depends on the partner. I have one buddy I would not hesitate to go into a partnership with and others I would never consider doing it. I have been hunting and fishing with the first for almost 30 years and know we share core values. Even at that, and even thought not every contingency can be calculated, as much as possible needs to be in writing so there is something to refer to over time.

If you 've ever had a room mate you wouldn't be considering this! He may leave little notes around the place telling you its your turn to vacuum, or clear the fence lines or something....

Never do bidness with friends or family.

In many ways, it's the exact opposite. If you have a pretty large ownership basis, you can hold votes, people can sell their share without having much of an impact on the rest of the group, etc.

It's when there are 3 guys that things get sticky.

I agree

ttechcolleyville, If you do not trust your neighbors in buying a large piece of land and splitting, how could you ever trust them in a partnership?

I've always wished I could get 10-20 guys @ 200k each together to buy some land and split up.

There is cheap enough land (hunting i assume) out there to buy 50 acres. If you cant afford it yourself you shouldn't be buying. Why would you want to split those profits?

Making money on land is easier said than done. Still better than the stock market if you enjoy land.

Partnerships IMHO are like marriages and you better get all the T's crossed and I's dotted in the prenuptial agreement about the divorce while everyone is being Kissy face and holding hands cause things change ALWAYS. Just one wise old man's opinion.

I thought this, undivided interest, is becoming pretty common out in west TX. I've run across a couple of deals where ranchers may sell a section of land and you pretty much are buying the hunting rights, they still keep running animals on the place. I know they do the undivided interest along the cost, Trinity river. I know Jack's bayou is private.