All Forum Posts by: Brenda B.
Brenda B. has started 4 posts and replied 9 times.
Post: Hi! I have never done a JV can someone reccomend a template?
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I have a silent partner that wants to do flips with me, he will provide the capital and I will provide the work. I have to do a JV with him but do I do individual to individual? or LLC to LLC? Do we have to create an LLC after the JV is signed? or I can work under my LLC once he signed the JV. Also, it is there a template I can use? Thanks!
Post: Does my silent partners needs to be in my LLC
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Quote from @Chris Martin:
@Brenda B. you should really have an attorney prepare a multi-member LLC Operating Agreement (OA) and run the idea(s) you have on financial arrangements by a qualified accounting professional. The rationale is: make sure you've thought through all (or most) of the issues that can come up. Think about your taxes on Form 1065, specifically how your K-1s will look in the future. Your P/L/C percentages (Profit/Loss/Capital) are key here. Does your partner want to take a big chunk of the losses (depreciation) to offset income? Is Capital contributed by just cash contribution or by services (like managing property) contributed? All this is part of the planning and should always be in writing, ideally in the LLC OA.
I've been extremely fortunate that so far, my partnerships (from most of 18 members to the least at 2) have worked out. I spent a lot of time reading through my state's LLC laws. I recommend you do the same. I googled Texas LLC code and I think this is applicable for you. Learning the LLC rules and educating yourself is extremely valuable and costs almost nothing, but a little time.
Thank you Chris! great information! He told me he wants to be my silent partner, no time to work on the flipping. I will make all the decisions, and we will split the profits 50/50 or the losses 50/50. Also, with your partners, are they silent partners? Do you shared the banking information? meaning do I give hin access to the bank account?
Post: Does my silent partners needs to be in my LLC
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Quote from @Andrew Syrios:
If he's an equity partner than yeah, he or his LLC should be in the LLC as a member. The LLC operating agreement should spell out each of your roles and make clear you are the decision making partner and he is the silent partner. You'll also want to come up with the process for dissolution if that comes to be as it often does in partnerships unfortunately.
well he is going to give me the money and I will do all the decisions so he will be a capital partner? He is very busy and cannot handle more work at the moment so he told me he wants to be my silent partner and split the profits 50/50 or the loss (hopefully no losses)
Hello awesome community,
I am starting a flipping business and as you know when you start.... there is a lot of options and confusion. I would love to chat with someone the old way which means on the phone or a zoom meeting. Can someone be a mentor to me for 15 min? I promise I will not take long that that, I need to talk to someone instead of posting my questions here in the forum... the answers give me more options leaving me more confused....
Thank you! :)
Post: Does my silent partners needs to be in my LLC
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Great thank you really appreciate it!
Post: Does my silent partners needs to be in my LLC
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Thank you @Jose Jacob yes he will be receiving profit from it...
Post: Does my silent partners needs to be in my LLC
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Thank you Mike! yes he will be receiving 50% of the profit if we do a profit or sharing the loss too
Post: Does my silent partners needs to be in my LLC
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Hello everyone! I have a silent partnership agreement with a friend in where we established the I will be the managing partner and he will be the silent partner. Me as the Managing Partner shall have full and sole authority and responsibility for managing and operating the business of buying, flipping, and renting of real estate properties.
He as the Silent Partner shall not participate in the day-to-day management or decision-making of the business of buying, flipping, and renting of real estate properties.
My question is, when establishing my LLC to buy the property do I have to add him as a member of the LLC in the certificate of formation? Thanks!
Hi! I got my first property under contract and I want to be out of the deal, it will require more money for repairs that the hard money lender is providing, but I still see the numbers are pretty good but for someone that has more cash in hand. Can I “wholesale’ my under contract? Thanks!