HELP. How to form/run partnership on 6 unit building?

Question

Hey all! So looks like my first deal is around the corner. And my partner/best friends second deal.

We wanted to ask some input from experienced partnerships on how to set up and run a partnership in a deal. We have run the math, we know its solid etc. We have a hard money lender(my family). So how do we go about planning even bank accounts and pay? Should we stick the complex in his already established LLC or make a new one? For cap ex should we have a combined savings to save into or just honor system? What do we do about the buildings accounting? Etc etc etc....

Background on us: We have been best friends since we were born(parents went to college together). Were both 23, he has a full time job he does well in and  a 4 plex already. I have my own small retail hobby business. We work super well together, we have a very similar moral, financial, and business mind. We are open to anything.

Thanks in advanced to all the input!

-Tim and Garrett from Maine

I will "tag" Garrett in this post if I can figure out how

Arun Krishnan · Answer

Hi Timothy,

did you guys end up making partnership? What kind of structure did you guys choose and how is it going?

I'm planning to do what you guys did so many years ago with my friends as well..

Ann Bellamy · Answer

Timothy, that didn't tag properly.  If you are on a phone, it probably won't work.  If you are on a pc, type @gar and you should see a dropdown box.  Scroll for his name if you are colleagues, and select.  That should do it.

Timothy Swenton · Answer

@garretthayes

Steven Hamilton II · Answer

The important part is a good detailed partnership agreement.

I would use a different entity for your new holdings. You don't want to complicate things by commingling the activities.

Type @"name" to tag someone you are connected to.