Need advice about entering into an agreement as an investor in Az
Hi, We'd like to invest in a rehab property, (through our LLC), with trustworthy acquaintances, but would like to get a written agreement in place. This couple has purchased the property for $185k with hard money and have put in $40k out of pocket so far toward the rehab with another projected $40-$50k needed for completion. There are 2 other silent investors who have put up $30k each. We're coming in late to the party.
We'd put in $35k and have equal say with the owners in all aspects of oversight of the rehab process, staging and selling decisions. The net profit would be split 25% for all. Is there a standard contract available that would cover this relationship or should we consult our attorney. All parties are in Arizona. Thanks in advance for any advice we can get.
Michelle & Frank Reynolds
#4 New Member Introductions Contributor
- Real Estate Agent
- Falls Church
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#4 New Member Introductions Contributor
- Real Estate Agent
- Falls Church
@Michelle Reynolds if more than 1 party is in charge of the "oversight and rehab process, staging and selling decisions" I would run away. Too many chiefs in my opinion.
To your question, you def had the right answer. Consult with your legal counsel extensively to avoid a bunch of chiefs delaying the exit because no one can agree.
Good luck :)
Thanks Brandon, actually its really just myself and one other investor involved in the process and choosing of materials used, staging etc.
Our main concern is the is how to structure the contract and put a lien on the house .
I think an attorney is the best way to go.
thanks so much,
Michelle
