Glendale, CA · Member since 2016 · 8 posts · 4 votes
Hi fellow investors,
I am finally moving from the analysis phase of my research to actually hoping to make a deal or two in the next couple months. I am in California but looking to invest in rental properties (SF and small MF) in the midwest. I am partnering with someone I know who lives in Maryland. Looking for recommendations for a good tax person and a good RE attorney that can help advise us on best way to structure things before we make our first deal. Would love to also hear how other folks out there of partnered up like this.
In the very least, you will likely want to have a formal written agreement between the two of you to govern split of profits, expenses, etc. What happens if one person wants to sell? Can you transfer your share? What if one person does more work than the other? If the property needs improvements and one person can't provide money for their share, how does that get treated? Etc. You'll also want to consider how you are taking title and what that does for your liability (for instance, a joint venture is treated as a general partnership which has unlimited liability). Do you know if you will be forming an entity in California, Maryland, or another state?
*This post does not create an attorney-client or CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.
Glendale, CA · Member since 2016 · 8 posts · 4 votes
7y
Thanks Katie. You bring up all the questions we are trying to figure out. Agreements aside, because we are working up that now, we need advice on where to create entities, how to best structure to optimize tax and liability implications. Also know enough to know I need to seek advice from experts so looking for accounting and legal professionals to help from the outset.