Originally posted by @Jeremiah Prophet :
I have a deal I'm working that I'll be entering into with a partner, 50/50 split of all expenses and returns. Does it make a difference:
Which one of us gets the loan?, Is one way better than the other?
Who is listed on ownership documents?
Does an official partnership agreement supersede everything previously mentioned ?
Also, where should I start when looking for partnership agreement template?
The property is in MD, we both have LLC's, his is in MD, mine is registered in VA
Here's what I do in this case:
I use 3 partners:
1 - Cash Partner
2 - Managing Partner
3 - Credit Partner
If there is no loan, then the Credit Partner's "%" is split between the other two partners.
If one of the other two partners gets the loan, that partner would get all of the Credit Partner's "%".
If you start out with no loan, and refi down the road, and the refi isn't done by one of the two original Partners (cash or Managing), then what would have been the Credit Partner's "%" that would have been split between the original partners, is removed from the original Partners and given to the New Credit Partner.