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Partnership contracts with sweat equity partner
Hi everyone,
I'm currently pursuing a partnership with two other colleagues and have few questions as it relates to partnership agreements and forming an LLC.
1. Partner A and B will be providing the capital for a property with intentions to BRRRR. Partner C is going to contribute time and work by helping with finding deals, doing most of rehab and property management.
As It relates to a partnership agreement: Can anyone provide good information on how to draft a partnership agreement for this type of partnership? How should a contingency look in the agreement if we decided to exit and sell rather than BRRRR?
2.When to start an LLC? If our collective goal is to buy several SFH properties annually, use the BRRRR process and eventually trade up in bigger multifamily properties, when should we start an LLC. Should we do it now before our first deal? Should we do it at all? I recall mention of difficulties with LLCs when it comes to refinancing properties. Is that true? Anyhow, any feedback would be much appreciated. Thanks.