Partnering questions / concerns

[Danny Jimenez]

Hello all! Got a quick question!

Has anyone had experience partnering with someone using their credit / W2 job and you did everything else? (Finding the deal managing the rehab/property management etc). if so, how did you find success in making a fair agreement between you two? Split equity? Split cash flow? And lastly, how could you best protect yourself against an unfortunate event where they no longer want to be in the deal say a couple years down the road? Thank you!

[Jaron Walling]

@Danny Jimenez For starters you need a business partnership agreement signed by both parties. The agreement should include sections answering the questions you're asking. It's probably wise to connect with a lawyer that's familiar with REI and have them draw it up for you. Without a signed agreement people can change there minds, get cold feet, and affect the outcome of the investment. The goal of any partnership agreement is to keep people on track and give both parties a similar exit strategy. This is absolutely required when raising money for multi-family, syndication, or complex real estate deals.