Joint investing through LLC - seeking advice

[David Boley]

Greetings, BP! After years of analysis paralysis, I am coming back around to real estate investing. To acquire more properties in less time, my nephew and I are thinking of forming an LLC together and pooling our money to purchase properties to rent out.

Any advice on:

* Forming an LLC (specifically in Minnesota)?

* Going into business with a family member?

* Cashflow distribution with business partner?

* Saving for CAPEX and other costs?

Thank you!

[James Hamling]

@David Boley -Who -What -When -Where -Why and -How

Go through and answer all these questions in a round-table. Cover this for every aspect; acquiring, operating, liquidating any particular "deal". 

And then for the company formation, operation, dissolution. 

Than finally ask each other what are the "what-if's". What if one wants to move? What if one wants to stop and the other go-go-go. What if someone is hit by a bus. What if someone hit's the lotto.     I find this process is best served just sitting together and spit-balling, just getting everything out, feverishly writing on a note pad. 

Once done, you give that note pad to an attorney to finalize everything, and to find any holes to infill. 

DON'T RUSH into it, it's always those things that were assumed that later come back to terrorize. Everything must be clearly spelled out so there is no thought going forward, it's just following the written agreement and plan. Including who your mediator will be if at impasse in decision making for a 3rd vote.