Don't Get Burned by Co-Investing: What You Need to Consider Before Partnering Up.

Last week I posted about the benefits of co-investing with a partner, today I'll explore the drawbacks:

1. Conflicting Interests: Co-investing with a partner can also bring up conflicting interests. Your partner may have different investment goals, timelines, or risk tolerance levels than you do. This can lead to disagreements and conflicts that could potentially harm the investment.

2. Loss of Control: Co-investing with a partner means that you won't have complete control over the investment. You'll have to negotiate and compromise on decisions, which can be difficult if you have different opinions.

3. Sharing of Profits: When you co-invest with a partner, you'll have to share any profits with them. This means that you won't get to keep all of the returns on your investment.

4. Legal and Tax Implications: Co-investing with a partner can also have legal and tax implications. You'll need to ensure that you have the proper legal and tax structures in place to protect your investment and avoid any potential issues down the road.

In conclusion, while co-investing with a partner can offer advantages such as shared resources and diversified expertise, it is crucial to remain vigilant about the potential drawbacks.