Is this a Fair Partnership agreement.

[Ben Jernigan]

Does This seem like a Fair Partnership 

Very Very Rough Draft 

WHEREAS, Party 1 and Party 2 (collectively referred to as "Partners") desire to enter into a partnership for the purpose of jointly owning and managing real estate properties;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Partners agree as follows:

1. FINANCIAL CONTRIBUTIONS:

1.1 Party 1 Responsibilities:

Party 1 shall contribute to the partnership for the down payment, closing costs, and construction costs for renovations and additions.

1.2 Party 2 Responsibilities:

Party 2 shall independently pay the mortgage until both properties are rented, oversee construction and renovation, manage both rentals, and handle bookkeeping during construction.

2. BUYOUT CLAUSE:

2.1 Term:

This partnership shall have a duration of 10 years, commencing on the effective date of this Agreement.

2.2 End of Term Meeting:

At the end of the 10-year term, a meeting will be held where both parties shall vote on options, including a buyout, selling the properties, or continuing the partnership.

3. REIMBURSEMENT CLAUSE:

3.1 Payment Plan:

Party 1 will be reimbursed 100% of the invested capital in a 10-year period (cash flow from rentals will be divided 70:30 or in the most convenient way for both parties, then cash flow will resume to a 50:50 split).

3.2 Invested Capital:

Party 1 shall be reimbursed 100% of the invested capital before any further distribution of profits.

4. EXPENSES AND CASH FLOW:

Upon complete reimbursement of Party 1's invested capital, both parties shall equally split all expenses and cash flow related to the properties.

5. OWNERSHIP:

All three parties shall be listed on the property deed from the inception of this partnership.

IN WITNESS WHEREOF, the Parties hereto have executed this Real Estate Partnership Agreement as of the effective date first above written.