Drafting A Real Estate Business Partnership Agreement

1. Real Estate Business Partnership Roles & Responsibilities

For a real estate business partnership to meet the expectations of those forming it, realistic roles must be assigned to each individual. If for nothing else, clearly defining the responsibilities of each partner will lay the foundation for a prosperous career in the real estate industry. What’s more, it’s vitally important to lay everything on the table before committing to something as serious as a real estate business partnership; nothing should be glossed over. At this point, it is absolutely necessary that every partner has a clearly defined role in the business moving forward.

2. Real Estate Business Partnership Financials

Financial considerations are among the first aspects of a real estate business partnership that need to be ironed out. In fact, you could very easily argue that any talks of a team environment shouldn’t move forward without at least some attempt to clarify the financial situation of an impending partnership. Who is going to make the lion’s share of the profits? Will profits be split fifty-fifty, despite the roles of each party? For what it’s worth, the best time to figure these things out is before you even go into business with one another. The most successful real estate business partnerships will result from an inherent understanding of the underlying financials.

3. Real Estate Business Partnership Commitment

Not surprisingly, the amount of time an investor intends to spend on their real estate endeavors can vary dramatically; it’s one of the aspects that makes investing in real estate so attractive. Real estate business partnerships can be lucrative whether they intend to work part-time or full-time; the key, however, is to make sure each partner is comfortable with the amount of time they will be expected to invest moving forward.

4. Real Estate Business Partnership Protection

I am convinced that the decision to enter into a partnership with a trusted and proven individual is one of the best an investor can make. However, the addition of a partner does come with a noteworthy caveat: risk. No matter how much you think you know someone, there is always the possibility no matter how slight it may be that something goes wrong. It is important to note that even a slight degree of risk warrants protection.

Topics: Real Estate, Partnership, Investment

Work cited: Than Merill, www.reiclub.com

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