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Contract for Partnering on a Flip
Hi BP family! I was wondering if anyone would be willing to share the form they use when partnering on a flip. I’m an experienced real estate investor and realtor, but have never had a partner. My name is on the deed. I know I can put a lien against the property for their contribution amount, but they trust me and are willing to be reimbursed (plus percentage of profit) when it sells. Any help is greatly appreciated!!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
There're two ways to go about it: proper or shortcut.
The proper way is to engage an accountant to create a tax plan and an OK-licensed attorney to draft an operating agreement. It is also a complicated and expensive route. If everything goes fine, it would feel as an overkill and waste of time and money. If something goes wrong, you'd be happy you invested in the setup. Your gamble.
The shortcut way is to treat and report everything as your personal deal, and then at the end simply issue your "partner" a 1099 for the interest and profit share he collected.