Partnering with a friend
Hey BP, I have a friend who I have been speaking with about partnering together with and I was hoping for some advice on the matter. We are looking at contributing 50% each to fund a new deal and we wanted to make sure we did it all the best way. We are thinking about starting an LLC and buying the property through that entity.
I would take on the property management side of the business and he would take on more the year end closings/book keeping/taxes/financial breakdown side.
We are trying to figure out a fair way of distributing out money and compensation for different up keeping procedures.
So far we have thought of two main fees - Property Management (I am hands on with my current property, so he would pay me to continue doing so with our joint houses), and Tax Prep (He is a CPA, so I would pay him that).
I am curious to know what other partnerships look like in a similar situation and if anyone can provide further insight.
I.E. what's a reasonable fee to charge for property management? We are in Eastern MA, I am happy to do research on my own too, but I'm also hoping to get some guidance or learn from someone in which direction to start.
Any and all insights are greatly appreciated!
I'm especially excited to hear what did and didn't work for people who have been through this situation and what some after thoughts are on the entire idea of partnering.