Lawyer for Partnerships
Hey BP Community and Happy Holidays! For those who have had experience with partnerships, do you have any attorney recommendations? I always hear that it's necessary to get everything in writing. Any tips / suggestions are welcomed!
I agree, I think it would be necessary to have that document drafted.
You should just connect with your local RE attorney that you use or can get a referral from through your network and see if they have one that they can provide you with one.
This response won't be too in depth or technical but I had always heard to get everything in writing as well, but failed to heed the warning on my first deal. Without going into too much detail on how the deal was structured I'll just say that I put up all the money and a close family member put title in their name so that it could be bought with a lower percentage down payment. This was going to be a 50/50 split. Nothing was in writing because I trusted this person wholeheartedly. In the end that came back to bite me. They kept the property (which is 3,000 miles away from me) and never gave me any of the rental income or the money that I provided for the down payment. They simply just stopped returning my calls,texts and emails. Long story short I recommend getting an attorney to draw everything up. All plans, splits, arraignments, everything. No matter who it is just tell them it's nothing personal, it's only business. Best of luck to you @Tina Tsysh!!
Quote from @Tyler Fontaine:
I agree, I think it would be necessary to have that document drafted.
You should just connect with your local RE attorney that you use or can get a referral from through your network and see if they have one that they can provide you with one.
Thank you for your response Tyler. I am hesitant to reach out to just any local RE attorney, because there are so many niches in RE and i was hoping to get a recommendation for someone who has dealt specifically with Partnership Agreements. I will keep looking!
Quote from @Michael Wallimann:
This response won't be too in depth or technical but I had always heard to get everything in writing as well, but failed to heed the warning on my first deal. Without going into too much detail on how the deal was structured I'll just say that I put up all the money and a close family member put title in their name so that it could be bought with a lower percentage down payment. This was going to be a 50/50 split. Nothing was in writing because I trusted this person wholeheartedly. In the end that came back to bite me. They kept the property (which is 3,000 miles away from me) and never gave me any of the rental income or the money that I provided for the down payment. They simply just stopped returning my calls,texts and emails. Long story short I recommend getting an attorney to draw everything up. All plans, splits, arraignments, everything. No matter who it is just tell them it's nothing personal, it's only business. Best of luck to you @Tina Tsysh!!
Sorry to hear that and thank you for sharing Michael. Have you done any deals since that which involved other partners?
Partnership deals are something I have not done since that lesson learned. There was a little bit of scar tissue from the experience but I am certainly open to partnerships again now however it will definitely be clearly structured and fully in writing through an attorney. Live, learn, grow and get better like a fine wine!