Questions about getting started- rental property with partners
Looking for a little insight with regards to buying a rental property with two other partners. The plan is that I will take the loan out in my name solely. Then create a partnership in which we divide expenses/profits equally. I understand most of the details that need to be spelled out with the partnership but I'm not clear on certain aspects. Please someone point out the errors in my line of thinking:
- After the home is purchased in my name, we start a partnership and write up a contract with regards to profits and member responsibilities etc. Do I quitclaim the deed in all of our names?
- If so, what happens if another member "defaults" on the language set forth in the contract? For instance the property is empty and one member decides not to pay his share of the mortgage. Can the language in the partnership contract be written to allow the removal of a partner off the deed due to breach of contract?
dilemma: Since I'm responsible for the loan I want to make sure that none of the other partners can "sit on the deed" if they haven't "held up their end of the deal". But at the same time provide them with assurances that I can't just "walk away with the property" and leave them in the dirt.
I'll listen to any advise, I'm new to this dimension.
Thanks.