REI with a Partner

[Jarrett Schaef]

I am just looking for some more information on how the details work out when you partner on a property.  I understand that there are many forms of partnership, but I would be looking for an equity partner.

Does the equity partner actually get the loan (assuming they don't pay the purchase price) and add the investor to the title?  I guess I would appreciate a breakdown of the process after finding a deal and a partner.

[Peter Sanchez]

@Jarrett Schaef there is no "normal" way to set up a partnership, it will be based on whatever you agree to.  Something where you will both be doing the work on the house, for instance, will look a lot differently from something where one person is the money person and the other one does all the work (different in terms of work involved, risk, and payout percentages).  Start with talking with your potential partner and putting together a one page "term sheet" with what you envision the partnership will look like in terms of duties and share of profits/losses. Do this waaaaaay before you start bidding on properties.  Then you can draft a contract IF you agree everything.  If you can't get past the one page term sheet, there is no need for a contract.  And what other people do in their agreements is irellevant to your deal if your partner is not okay with it. 

For instance, I wouldn't allow my name on the loan and it wouldn't matter to me that other people do it that way.