Hi! I have never done a JV can someone reccomend a template?

Question

I have a silent partner that wants to do flips with me, he will provide the capital and I will provide the work. I have to do a JV with him but do I do individual to individual? or LLC to LLC? Do we have to create an LLC after the JV is signed? or I can work under my LLC once he signed the JV. Also, it is there a template I can use? Thanks!

Chris Martin · Answer

See also Does my silent partners needs to be in my LLC. Until you have experience in partnering with others on successful projects, I highly recommend working with your partner and an attorney to structure an appropriate, legal, and viable operating agreement, be it in context of an LLC or otherwise.

Good luck to you.

BTW, I have created several MMLLCs, some with people I initially never met face to face, and at the core are general terms and, legally, the Operating Agreement. I am in NC and LLCs for partnerships in my state are necessary and sufficient. I use them for everything related to business ventures, past and future. An attorney drafted OA is mandatory.

Chris Seveney · Answer

@Brenda B.

Never use a template - get an attorney to draft the proper documentation

Gloria Nowotarski · Answer

Since he is silent, you can get the LLC w/ SCorp since you are flipping to reduce taxes. You'll need a contract made up between the two of you and a loan doc for the funds. I don't know of any templates. I'd recommend you seek a real estate attorney who is familiar with  real estate investing and start there. (I"m new on this platforms, so look under resources to see if there is some kind of template/loan doc.) If you plan on keeping the property, all you need is an LLC which you would be the sole member of, unless he wants to be in it too, so share all those set up expenses, ask him.. Good luck.