My friend and I are going in together on a couple of properties and plan to continue going forward. These will be SFH's and we plan to put each in only one of our names with a partnership agreement between the two of us to enumerate all the details of profits and expenses. I'm curious if I can use a service like legalzoom for something like this or if I should get an actual attorney, and if so, what kind.
I'm not sure if this allowed in this part of the site, but if the latter, does anyone have a recommendation for good attorney's?
Trae, in my experience rocket lawyer works just fine for what you're needing. I have never used legal zoom but it seems like it's the same concept as rocket lawyer. When my partner and I first started out we hired a real estate attorney to setup our LLC and it was a bit too expensive for our liking.
We found that Rocket lawyer is great and affordable when we have quick questions but if you need more in-depth help reaching out to a local attorney who is familiar with your local laws might be more helpful.
Thanks @Ralph Justiz what type of attorney would I reach out to for an agreement like this?
It doesn't sound like you're putting anything in an LLC. If I understand correctly, one of you is putting the property in your own name, and the other is hoping the partnership doesn't break down later. At minimum, you will want to investigate this much further. A partnership leaves both partners exposed to liability, and you will need a complex and tailored agreement to ensure both partners are protected. You may benefit from an LLC or some other form of joint venture agreement.
You'll want to talk to a business attorney who has worked with real estate investors. Legal Zoom and Rocket Lawyer can put together a bare-bones agreement, but they usually don't hold up well in court if there are numerous partners or special arrangements, which is what it sounds like you have.
Thanks. We aren't using an LLC to ensure we can get financing on the property, which I had read is hard under an LLC. Is that incorrect?
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