Comments on: Establishing a Partnership for a Real Estate Deal http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/ Learn, Network, Invest Sun, 22 Nov 2009 20:12:38 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Joshua Dorkin http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-70669 Joshua Dorkin Tue, 15 Sep 2009 15:35:54 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-70669 EAlex - A real estate partnership is a serious matter, and should be personalized based upon the opportunity, partners, etc. The last thing you should be doing is using some bland, generic form to solidify your partnership. If you're going to get into business with a partner, I think your best course of action would be to put all of your terms into writing. Then, set up a meeting with a reputable real estate attorney to formalize the agreement. EAlex –
A real estate partnership is a serious matter, and should be personalized based upon the opportunity, partners, etc. The last thing you should be doing is using some bland, generic form to solidify your partnership.

If you’re going to get into business with a partner, I think your best course of action would be to put all of your terms into writing. Then, set up a meeting with a reputable real estate attorney to formalize the agreement.

]]> By: EAlex http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-70662 EAlex Tue, 15 Sep 2009 14:27:01 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-70662 Is there a site that produces free, generalized real estate partnership agreements? Is there a site that produces free, generalized real estate partnership agreements?

]]> By: J. Irvine http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-65892 J. Irvine Tue, 26 May 2009 18:55:02 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-65892 Dayan, You pose a great question. What did you end up deciding on the split? I have a similar situation where I will put up a small portion of the investment but manage the rehabs and finding the deals. The outside investor / partner will end up putting up the majority of the funds. Any suggestions? Jeff Dayan,
You pose a great question. What did you end up deciding on the split? I have a similar situation where I will put up a small portion of the investment but manage the rehabs and finding the deals. The outside investor / partner will end up putting up the majority of the funds. Any suggestions?
Jeff

]]> By: Dayan Borges http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-50300 Dayan Borges Tue, 26 Jun 2007 02:58:52 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-50300 I have an investor who wants to put up 100% of the funds for purchasing a property. My role will be to renovate the property. The investor knows nothing of construction and I have all the construction experiance. I will be the 100% of the labor and he will be responsible for 100% of the investment capital. What is a fair split? Thank you, Dayan Borges I have an investor who wants to put up 100% of the funds for purchasing a property. My role will be to renovate the property. The investor knows nothing of construction and I have all the construction experiance. I will be the 100% of the labor and he will be responsible for 100% of the investment capital. What is a fair split?

Thank you,

Dayan Borges

]]> By: Kathi Dameron http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-49854 Kathi Dameron Thu, 10 May 2007 13:04:29 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-49854 This is exactly the information I was searching for about structuring a real estate partnership deal. I need a private money real estate investor asap for a Tallahassee, Florida property rehab. This is exactly the information I was searching for about structuring a real estate partnership deal. I need a private money real estate investor asap for a Tallahassee, Florida property rehab.

]]> By: W. Keoki McCarthy http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-49790 W. Keoki McCarthy Thu, 26 Apr 2007 18:17:17 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-49790 One of the first questions is how to take title. Tenants in common is the most common way that investors do it. However, a lot more families and/or "partners" (in the not married but committed way) are buying properties together and asking the question of "who should get the property if one of us dies"? In joint tenancy it can just switch over to the surviving owner instead of going through the deceased owners estate. Personally, I don't know if I want to give my family a reason to root for my demise. Another big point is purpose. Talk about why you are buying the property ahead of time. Is it to be a long term hold? Do you both agree on what long term is? Are you flipping it as soon as it has made you money? How will future capital contributions be dealt with? If it is a long term hold, what do you do when it needs a new roof? Can one partner make the decision to put the roof on and then require the other to pay for half? What if one partner has low cash flow and the roof needs fixing immediately? A lot of investment agreements have “calls”. A call is the ability for one partner to notify the other that a contribution is required and there are time frames for response. All of these things must be written out. These are what came to mind as I was reading this article. The bottom line is you MUST contact an attorney. There is so much more that can come up to bite you in the bottom if you are unprepared. A good attorney will try to anticipate as many problems as possible and give you a written solution in advance. That way everyone is on a level playing field and knows what will happen. One of the first questions is how to take title. Tenants in common is the most common way that investors do it. However, a lot more families and/or “partners” (in the not married but committed way) are buying properties together and asking the question of “who should get the property if one of us dies”? In joint tenancy it can just switch over to the surviving owner instead of going through the deceased owners estate. Personally, I don’t know if I want to give my family a reason to root for my demise.

Another big point is purpose. Talk about why you are buying the property ahead of time. Is it to be a long term hold? Do you both agree on what long term is? Are you flipping it as soon as it has made you money?

How will future capital contributions be dealt with? If it is a long term hold, what do you do when it needs a new roof? Can one partner make the decision to put the roof on and then require the other to pay for half? What if one partner has low cash flow and the roof needs fixing immediately? A lot of investment agreements have “calls”. A call is the ability for one partner to notify the other that a contribution is required and there are time frames for response. All of these things must be written out.

These are what came to mind as I was reading this article. The bottom line is you MUST contact an attorney. There is so much more that can come up to bite you in the bottom if you are unprepared. A good attorney will try to anticipate as many problems as possible and give you a written solution in advance. That way everyone is on a level playing field and knows what will happen.

]]> By: Teresa Boardman http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/comment-page-1/#comment-49667 Teresa Boardman Thu, 12 Apr 2007 03:03:26 +0000 http://www.biggerpockets.com/renewsblog/2007/04/04/establishing-a-partnership-for-a-real-estate-deal/#comment-49667 Just had to stop by and read your carnival post and say Hi how are you? busy I am sure. :) Just had to stop by and read your carnival post and say Hi how are you? busy I am sure. :)

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