Partner on flip - what steps should we take?

Question

I apologize in advance if this was covered elsewhere in the forums as I could not find this subject through the search.

I am entering my first flip with a partner. We have no previous history (personally or professionally) but looking forward to working with one another on this small project.  I will be funding the project (cost of property and rehab) and the other party (experienced flipper with contractors in place) will be handling all of the rehab. Our goal is to have the property sold within 5 months and we will split profit 50/50.

We will each be putting the property in our respective business names through title company. (I assume that means that the warranty deed will be in both names?).

Is there a partnership agreement form that anyone can recommend? Or, are there any recommendations on how to structure the language of such a partnership?

I welcome any advice or feedback.

Thank you!

Tammy Tivis · Answer

Thanks so much @Zack Tran!  That form is awesome and looks like it can be adjusted to work for our needs.  I'm a pretty trusting person and it's clear we both have the same goals in mind. But, the partnership is new territory for both of us so we're trying to cover as many bases as possible. Life *happens* so no way to cover every base but  communication has been solid so far and that's the biggest part of any relationship.

I really appreciate you taking the time to post and help me locate that form. Best of luck to you in your ventures as well!

Zack Tran · Answer

Hi Tammy,

Your best friend is Google! Here's one I found:

https://freelegalforms.uslegal.com/partnership-for...

While not everything is relevant it should serve as a good guide.

Personally for me, I think it depends on how much you trust your partner. I am going 50/50 into a Buy/Hold property with a close friend and since I have more trust with him, our contract will be a lot shorter. In the end I've learned that you it's not worth stressing covering all bases, cause a contract never will. Its better to choose someone that you can trust, and have the general basics in writing.