Joint Venture / 1-Time Partnership Agreement
I have an opportunity to get in on a flip property with a good buddy. It is his first flip property and it will be my third. He wants me on board as a 50/50 partner because of my experience, relationships, and construction knowledge. He is providing all of the funding as a first time home buyer and he plans to own the property for 2 years to avoid capital gains. Curious how to set up the joint venture agreement if he will be avoiding the capital gains tax but when he pays me my share I will be taxed. Is this something anyone has any advice on?
I feel as though the deal is really good for me as I am providing mostly consulting services as well as accounting and management while my partner will be providing most of the labor and also the capital. I just want to set the deal up so it is fair to both of us as we are good friends and I don't want a bad taste in either of our mouths when all is said and done.
Thanks in advance for any advice!