Rental Property Investor · Enterprise, AL · Member since 2017 · 9 posts · 5 votes
Can someone please recommend a good book on commercial real estate partnerships?
I’m looking to partner with someone on a commercial property but new to this side of real estate. I believe I have a good understanding of GP/LP positions but I want to be best prepared. In this specific deal, I will be providing all of the financing while they are the one that brought the deal. I want to make sure it’s fair and helps both parties grow. Help me out fellow BPers
Not sure if there are in books out there. But one thing I would look into in entity structures. Google it.
Look at Limited Partnerships and how they are structured. General Partner is the one the oversees the operation and the limited partners are passive, silent and usually forks up most of the capital. One thing about LPs is it is a flow through to your personal name and taxed as personal income.
S-Corp and C-Corp are taxed at a corporate level.
You should look online at those mentioned entity structures or find an accountant on BP to answer any further questions.. This is a start
Then you should look into how to structure the entity based on your project. If you can't find anything on BP just PM me and I will give you suggestions
@Richie Davis A lot of this will depends on the property, amount of the investment, hold time, exit strategy, roles of the partners in management and execution, etc.
The best thing to do is agree on the general terms with your partner and then sit down with an attorney to discuss the fine points and draft all the documents. You should also discuss things with your accountant as well.