What terms would you put in your partnership agreement?

Question

For a roughly equal partnership where 2 investors split costs and tasks 50-50 for finding and  wholesaling houses (and may buy individually, buying the other person out for related marketing costs), what terms would you include in a partnership agreement?

For those of you with partner or JV contracts, what clauses do you recommend including?

What are some unforeseen things that could change/go wrong to factor in?

All ideas welcome! thanks in advance

Ruth Bayang · Answer

What @Colin Smith said.. EVERYTHING, no matter how silly it seems.Think of it like a pre-nup. It may all be fine and dandy now. So agree NOW as to how to handle A, B, and C before the s*** hits the fan (it always does).Then have a lawyer tweak it.

Colin Smith · Answer

Anything and everything you can think of should be agreed upon. The last thing you want is someone to says they will split every 50/50 and then after a couple months they only 10% of the work and contribute 10% of the finances but at the end of the deal expect 50% of the pay. Everything should written out, even if it seems ridiculous in the moment.

James Miller · Answer

You should go discuss with a lawyer. You should not attempt to draft your own partnership agreement. Partnership law is very complex; in fact, many lawyers don't understand it nor practice it.

What terms would you put in your partnership agreement?

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