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Updated over 5 years ago on . Most recent reply

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Matt N.
  • Investor
  • Washington, DC
14
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51
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What type of partnership should we form?

Matt N.
  • Investor
  • Washington, DC
Posted

My brother (Rez) has a real estate investment company with a partner of his (Sam) which basically bought multi-family units and condos, repaired and rented them out. Income is earned from the rents. They own 13 units at the moment. I own 4 units. We want to form a partnership that benefits all three of us and allows us to raise money ($2 million) perhaps in the form of an equity fund. However, my brother wants to play a limited partner role, so Sam and I will be playing the general partner roles. Sam has a full time job and will help part-time. I have time and can make this my full-time job if the pay is at least $5,000 a month. What type of partnership should we form so that our interests are aligned and different roles and amount of responsibility is recognized? Do you know who can answer such a question?

Most Popular Reply

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3,139
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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
2,094
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3,139
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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
Replied

@Matt N. It takes a bit of research but there're plenty of posts on BP and outside of it about various business structures. Here's one example: 

https://www.investopedia.com/terms/d/debtfinancing.asp

The same applies to finding an attorney, look through old posts to find either attorneys or local investors to ask for recommendations. 

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