Confused about partnerships

[Tarcizio Goncalves]

Hi everyone, I am trying to start my REI career and had questions regarding partnerships. I'm not sure if someone can share a partnership agreement they have or not but I am having a though time wrapping my head around this concept. I have some cash saved up that could be used as a down payment on an investment property but what if my potential partner doesn't have cash? Splitting the profits 50/50 or 60/40 just doesn't make sense to me if I am bringing in the money. I know that in the agreement, responsibilities need to be set. What are these responsibilities? What happens if my partner doesn't hold his side of the agreement? I was curious to know what people have in their agreement and how I can make a partnership work.

Thank you

[Cameron Paterson]

If you have the down payment, why are you partnering?  Will they handle the management side?  If so, you will make a clear list of what is expected from each party and your split will be whatever the two of you decide is fair.  If it is purely management, maybe don't create a partnership and simply pay them a management fee so that if problems occur later, the property is yours and you can find another manager.

There is always the possibility that a partner may not uphold their end, which is why the only partnership I have pursued was with a passive investor and I handle just about all of the business.

I will let someone else chime in as to the legal things you can do to keep yourself protected, but again I think telling us why you want to partner will help.