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Updated 3 days ago on . Most recent reply

Wisdom on Partnership Structure
Good Morning BP!
I'm an investor in Oklahoma. Over the past 7 years, a buddy and I have partnered 50/50 on a few flips and currently have 1 long-term rental. We would have more, but I went through a divorce and that really slowed us down. Now we are looking to ramp back up.
This time, it looks like its going to be a little different. I have the capacity to bring cash to enable acquisition. He has some, but its definitely a bit more limited but he is the rehab manager and he is excellent at managing the day-to-day.
We were contemplating setting up a new LLC with different ownership %'s where he would see cash flow as he operates the properties (similar to a property management firm), but might only own 10% (or something similar). He would benefit from monthly cash flow whereas I'm more interested in the long-term benefits (appreciation, debt paydown and yes, cash flow).
Does anyone have any suggestions on structure/terms that you may have seen in the past that would be beneficial to us both?
Most Popular Reply

- Property Manager
- Royal Oak, MI
- 6,321
- Votes |
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Get an attorney to draw this up!
Think of every possible outcome and have it covered, including death or incapacitation of one of you.
- Drew Sygit
- [email protected]
- 248-209-6824
