How to handle multiple partners
How are everyone structuring multiple partners for RE deals? Say 1 has good dti and credit so qualifies for the loan, another finances the down payment, another is a craftsman and provides sweat equity, etc. Is a contract drawn up by a lawyer sufficient or do we need to get into a corp/llc (i believe this pushes into commercial loan then no?), etc. Is there a BP podcast on this subject or something maybe?
@Robert Conlin There is no one right way to do a partnership. In fact, every one will likely be slightly different. As long as it appears fair or is acceptable to all parties, then that is a good partnership. I would highly recommend having an attorney draw up the partnership agreement in order to make it legally binding. This is in addition to establishing an entity.
Food for though before you jump into the partnership: 1) Ensure each partner brings some substantive and complementary to the table. 2) Establish and maintain open, honest communication from the beginning. You must be willing to have the hard discussions from the beginning. If one partner does not feel they can share their thoughts openly, then sooner or later this is going to negatively impact the partnership. 3) Ensure all partners have similar values and goals. It won't make sense if one partner wants to hold long term and another wants to flip properties.
Best of luck!