Myself and a friend are looking to get into investing in buying hold single-family homes. She would be putting all the cash down for the property and I'm a contractor and would take care of all of the rehab work along with finding the house, dealing with real estate agent etc. how can we make it so that it would be 50-50 ownership of the property and all future profit?
To establish a 50-50 ownership in both the property and future profits, you'll need a formal agreement outlining each person's contributions and rights. One common approach is to form a legal entity, such as an LLC, where both of you are equal partners. In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly. It's a good idea to consult with a real estate attorney to ensure everything is legally binding and clear to avoid future disputes.
Myself and a friend are looking to get into investing in buying hold single-family homes. She would be putting all the cash down for the property and I'm a contractor and would take care of all of the rehab work along with finding the house, dealing with real estate agent etc. how can we make it so that it would be 50-50 ownership of the property and all future profit?
I'm assuming you would need an LLC for each property but potentially you could make one that would encompass all your properties.
To establish a 50-50 ownership in both the property and future profits, you'll need a formal agreement outlining each person's contributions and rights. One common approach is to form a legal entity, such as an LLC, where both of you are equal partners. In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly. It's a good idea to consult with a real estate attorney to ensure everything is legally binding and clear to avoid future disputes.