Phoenix, AZ · Member since 2015 · 5 posts · 1 vote
Ok, Bigger Pockets!!!
We plan to start flipping houses. This is the first time we will work with a partner, someone with much more experience than we have.
He will invest 70% and we will the 30%. Because he is a contractor and a realtor as well, he will do practically all the work (flipping and selling the property).
One the property is sold, the gains will also be split 70/30% in his favor.
He will have his name on the title and add us on what he called a "cloud" on the same title.
Additionally, we will have our agreement put in writing. He has pre-printed agreements that he uses.
My questions:
What will be the best way to structure this venture on our side? Do we set up an S-corp for tax purposes? Any other suggestions on that part of it?
What do you think about the sort of agreement that he proposes for the partnership?
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
You are getting a great deal here, an even split for money contributed for unequal work a Corp is probably not necessary for tax purposes, but make sure you have this partnership agreement in writing.
Lender · Avon, CT · Member since 2019 · 64 posts · 27 votes
6y
I see MANY partners with LLC's ... seems to be the way most of my clients structure the business. I also agree with Aaron- Definitely get the partnership details in writing and looked at by your attorney before engaging! It sounds like an amazing business opportunity though!! Wish you the best of luck!!!! :)