What's the best way to set up a partnership?

What's the best way to set up a partnership?

Real Estate Agent · Chicago, IL · Member since 2016 · 21 posts · 10 votes

I'm have been asked to enter into a partnership with an experienced investor, and I'm not sure how to or the best way to structure a partnership. Any advice or resources you can point to? I'd like to double my units in the next year and the best, more feasible way to do it is with someone that has done for over 40 years. I've done my projects solo so far and it has worked out for me, however, it is time consuming and not in the position to invest all into one deal. Partnership seems like a good idea. Any suggestions? Thanks! 

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  • Tim DelaneyPro Member
    Buffalo, NY · Member since 2018 · 790 posts · 530 votes
    1y

    BP has a book on Partnerships written by Ashley Kehr and Tony Robinson.

    On the technical side I would suggest partnering on a single flip which can be done with a simple JV agreement before jumping into creating an entity and crafting very good operating agreements. This will give you the chance to see how well you work together before committing to more overhead.

  • Real Estate Agent · Chicago, IL · Member since 2016 · 21 posts · 10 votes
    1y

    Thanks. I'll check out the book. I agree, one deal would be a good start. What is a JV agreement?

  • Tim DelaneyPro Member
    Buffalo, NY · Member since 2018 · 790 posts · 530 votes
    1y
    Quote from @Angie Ruiz:

    Thanks. I'll check out the book. I agree, one deal would be a good start. What is a JV agreement?


    Joint Venture. Basically a partnership. While JV's can be more all encompassing, generally they are used for a single deal at a time.

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