Midland, TX · Member since 2016 · 1 post · 0 votes
I'd like to invest in a small commercial property with two friends including my brother. I'd like to avoid the timely and expensive PPM process. Is there a simple way of legally doing this? Appreciate everyone's comments and input. Cheers.
I am not an attorney but have syndicated deals. My understanding is that if anyone invests money but does no work, you have created a security and need a PPM. If you are all directly involved in running it, you have a partnership.
That does not mean you should not talk to a lawyer. Partnerships can be very difficult to manage. You should put in place a partnership agreement so everyone knows their roles and what happens if someone wants out (or needs to be kicked out) or dies or gets a divorce, etc etc. Proceed without an agreement at your own peril.