How to structure this LLC
Hi BP, Looking for some help here.
Considering doing my first deal. There's 2 partners not including myself. Here's the basic facts, and I'm more than happy to get more transparent if need be.
-I found the deal, off-market. MF, looking to BRRRR and potential sell after 1 year (when capital gains drop) or hold long-term for cash flow.
-We are all fronting the money, equally as of right now for the down payment. The commercial lender's relationship is that of the 2 partners. We will share responsibility for qualifying for financing.
-I will manage the rehab with the GC, and I'm responsible for the successful performance of the property financially.
-We all have a close relationship - I have known the partners for 15+ years.
Based on this information, what would be a realistic, and fair, split in terms of ownership for a LLC in this situation? This is my first LLC, and want to cover all of our bases.
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Real Estate Agent Rhode Island (#009528102) and Massachusetts (#009528102)
- Clipper Properties, LLC