Partnership Legalities

[Stacy Weng]

I'm new to real estate investing and would like to start flipping in the Northern Virginia area. If I were to partner with another investor, whether it's a friend or someone I meet through a meetup, what do I need to do to make sure the partnership structure and details are outlined properly? Do all partnership agreements need to go through a lawyer, or are there customizable contracts/agreements from LegalZoom or some other online resource that I can download and use? At what point do I need to think about forming a LLC?

Total newb here, so any insight on the legalities and best practices would be appreciated!

Thanks!

Stacy

[Matthew Kreitzer]

Generally speaking, I would not recommend using LegalZoom. The problem with LegalZoom is that the documents are not custom tailored to your particular business plan or business model, and do not necessarily adequate shift the risk where it needs to be. My recommendation is to seek out a Business Attorney in or around Fairfax to help you create an agreement that works best for you. Although the initial cost is higher than plugging some info into LegalZoom, the end product is likely to protect you far more in the event of a dispute.

Invest in yourself, get a lawyer, and have a good document drafted. It is a good idea to have the operating agreement in place prior to getting financing, signing any contracts, or buying any properties. 

DISCLAIMER: The above is for basic educational purposes. For more information, seek out a local attorney.