Updated almost 5 years ago on .
partnership LLC structure
I'm wondering for those of you with partners, how you have structured the partnership. I have a few BRRRs under my belt, been investing for about 15 years with 8 units (triplex, 2 unit mixed use and 3 SFRs). I was approached by a friend who lives outside the US that is interested in building a portfolio and he has proposed the following:
We set up an LLC funded 75% him 25% me ($150K/$50K)
we split all income and profits 50/50
upon sale of any property, his 150 is received 1st, my 50 second and all profits above that are split 50/50
all he is contributing is $. He can't get a loan as a non US person. So leveraging my credit, experience, network, etc.
anyone have a set up like this? what else should i be thinking about? predetermined dates for one partner to liquidate? specific liquidity requirement? any thoughts?