My sister, wife and I have created a Delaware LLC. The plan is for my sister (who is a environmental lawyer) to generate and read thru all of the legal docs as necessary, while my wife and I run the numbers on potential properties and perform the PM function of our rentals. That said, the work my wife and I are putting forth seems to be far greater, and probably will be once she and I start actively managing our properties. What do you recommend as far as structuring the duties/payments once cash starts flowing? 50/50 doesn't quite seem reasonable. Thoughts? We have a month before we close and we haven't finalized the LLC plans yet. Thanks.
Unless the attorney is putting up majority of the capital I don't see why there would be a split. You can easily go to a RE lawyer for a few hundred bucks and have all that written into an OA.
For me, legal services don't bring enough value to earn a significant portion of the equity. If the attorney in question doesn't have a background in real estate law then I really don't see where the value add comes in.
Unless the attorney is putting up majority of the capital I don't see why there would be a split. You can easily go to a RE lawyer for a few hundred bucks and have all that written into an OA.
Well she’s my sister. 😂. But I can already tell it could be a pain and may affect our relationship, so moving forward my wife and I will probably go at future rentals solo. The plan was for us to split the DP 50/50 as well as any costs associated with the rental. But once we start actively managing it and driving to the unit that’s where the grey area begins. Hard to put a number on that.