jad n rich

Anybody ever gone into a business as a silent partner

Very successful bris bayside realestate agency, aussie relatives, 20% returns, however my head says NOOOOOO bloody way.

Partner wants to consider the idea.

We are well divided on this one

Disaster waiting to happen or dream opportunity ????? Opinions please.

moneypenny20

Could be a complete nightmare or could be that dream. Probably depends on relationship with rellies. I would have thought that the main nightmare would be getting all the legalities totally sorted so there are absolutely no loopholes or future problems. Something in its favour must be that the business is already up and running and successful. Had it been a totally new venture then I probably wouldn't but....... Good luck with the decision - just remember, what ever the outcome is - neither of you is allowed to say "I told you so"

jad n rich

You have hit no one worry on the head, how the hell if you dont have a say could you ever cover every legal eventuality that may occur, I dont think I trust anyone THAT much. Not having a say bothers me, I like to have a say too

moneypenny20

yup, especially if they tell you they are going to do something and every bit of you screams NO!!!!! My trouble is that I am too cautious when it comes to money and would say no but then regret it in about 10 years when I would have been a millionaire

Muzza04

Well, real estate is a huge risk. Highly competitive market, where it;s great when it's booming but cut throat when properties are slow to sell and the market is in the doldrums.

Dont know about Brisbane's market, but here in Perth, it' like there is a glut of RE agencies in the metro area. Most, IMHO, will go bust when the market starts to stagnate.

Centurion

Been there, seen it and done it. DONT DO IT!!

If you are a huge sucess then the constant 20% of your profits being given away for what is usually a small initial amount of capital investment soon becomes annoying, especiall when you've repaid that capital loan some 200 times!

TeresaG

I don't think I would do it as I wouldn't like not being able to have a say at all.

chaval

As mentioned earlier..legals...Ive seen no end of people go into business with either mates, families, silent partners and the like and on the offset its all fine and dandy...and then something changes and its a nightmare. Get a shareholders agreement (if applicable) sorted out from the outset. It might seem abit costly but if you dont and a situation arises in the future it will cost you much more to get it sorted at a later date.

Cheers

thebears

If your losing sleep over it then don't do it. Trust your gut.

Alan Collett

- Can you afford to lose the money if the business fails?

- What's your exit route/how can you get your capital repaid in years to come?

- Does a 20% return compensate you if there's no exit route available?

- Even venture capital firms have representation on the Board, even if they don't participate in the day to day running of the business ...

- Have you seen a business plan?

Good luck!

Glenn Smith

nooooooooo dont do it !!!
trust nobody to look after you other than you!!!!

jad n rich

Didnt do it, good to read this thread again, everyone seems to think the same thing, NO WAY.

Relatives absolutely 100% sticking to wanting our money but not wanting us to have a say Plus I think today has proved going into a RE business at the moment might be even more risky than usual. Thanks for the replies.