Who sets up a joint venture?

Question

Aloha BP! Who would I contact if I'd like to invest in, say, Indiana but would like to use funds from a limited partner? Also would I need to have a different operating agreement set up for a different state like Ohio? What are the average costs for setting this up per agreement. Should there be any other paperwork along with this? Thanks in advance.

Brett Snodgrass · Answer

@Justin Young

I would recommend joining and coming to some of the local meetups frommeetup.com like these:

Indianapolis Wholesaler Coalition

Indianapolis Wholesale Houses

CIREA

INREA

Hope to see you at one of those events and keep in touch... Thanks and God Bless.

Laura Alamery · Answer

@Justin Young

Aloha! I started real estate investing in Hawaii long time ago (1987)! I used to work for Dolman and Associates, who then became Remax down by Ala Moana. :)

As far as your question goes, you have to be careful about SEC regulations. If you want to avoid complications, you need to use intra state funds for same state deals. So for instance for deals in Indiana, you should use funds from a limited partner who resides or has a business registered in Indiana for the purpose of funding. Also I suggest that you open an LLC or Corporation in Indiana and you elect yourself as part owner/member with the investor/partner.

You can cut down on costly paperwork and fees by forming an llc or corporation in the State where you invest, electing yourself as owner or member together with the limited partner, and use the funds from someone within the state for deals in that state.