How to set up a JV deal?
Hi all,
I just found a capital partner who wants to do deals together. How would the sales agreement be written?
Should both LLCs go on the sales agreement? How would this work if the profit is being split up 50/50?
I would recommend you talk to a lawyer.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Open a LLC together. Other option is to draft up a JC agreement with both LLC's on the deed.
@Christopher Lynch I'd form a new LLC and just draft an operating agreement since you plan to do multiple deals with this partner. You then just file a tax return annually for that LLC and you and your partner will get a K-1 for the income you received. Super straightforward.
@Christopher Lynch If you both already have LLCs set up, then you can just have an attorney create a JV agreement for you, with both of your LLCs as the parties to the deal. The JV agreements will outline profits, terms etc.