I am putting together a partnership agreement between myself and a few other partners all with different strengths. The project is for a RV park located on land that I own. Some partners have local connections with planning and zoning others have experience with RV parks others lawyers and influential individuals in the community.
The real question I have is in reference to the agreement itself. I have a handful of things that I was thinking of including covering each individuals responsibilities and what will happen with any kind of profit generated from the project after all expenses and loan payments. Does anyone have any recommendations on things that I might overlook on writing this agreement because I know I got agreement makes good partners. This is the first agreement that I will be putting together so any help or insight would be gratefully appreciated.
@Michael Lesavoy , do yourself and your partners a favor and hire an experienced business attorney with a focus on real estate partnerships. Partnership agreements are not do-it-yourself projects, and using templates downloaded from the internet or borrowed from a friend can lead to disaster. Not if everything goes right, but for sure if anything goes wrong.
An experienced lawyer will think of all of these things you are worried that you’ll miss, and then some. As the old saying goes, “don’t try this at home, kids!”
@Michael Lesavoy I would echo what @Brian Burke shared above. Shortcuts often lead to painful and expensive outcomes. You and your partners may be friendly and aimed in the same direction today, but history has proven that dynamic has the propensity to change, so guidance from an experienced attorney would be well worth the expense to avoid pain. If all the partners chip in, that should be a reasonable cost to insure long-term happiness in the partnership.
No need to beat a dead horse. Listen to both @Brian Burke and @Jack Martin
There are a lot of potential issues that typically increases exponentially as you add partners. We would ask about prior experience, what happens if a partner dies, forced buyback, insurance, majority vs plurality, managers liability, etc.
Happy to chat more.