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931: How to Build a Real Estate Portfolio from Scratch in 2024

BiggerPockets Real Estate Podcast

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Partnership Demands Responsibility for Success

A fair partnership structure can foster accountability and performance. In a financial agreement where one party funds an investment and the other manages it, equity and cash flow can be shared equally. However, the manager can take no cash flow until the investor's initial stake is recouped, ensuring that the manager works diligently to achieve positive results. This arrangement incentivizes the manager to perform excellently, as their future earnings depend on the success of the investment, thus building trust and enhancing the likelihood of a successful partnership.

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