Protection in Partnerships

[Buddy Holmes]

I have been offered a good deal in a group of 5 duplexes. My neighbor has recently become interested in REI. As a good will introduction, I am considering a partnership with him on this deal.

I hold all my current SFR in my own name or jointly with my wife and protect myself with an umbrella policy. This is/would be my first partnership. Some of the issues I am thinking of are:

1)  Title of properties jointly with my partner seems straight forward, but how to be sure both must agree to sell?

2) How to structure mortgage so both are 50/50 responsible rather than either 100%?

3) Should we form and LLC for the partnership?

4) I am thinking of a 20% (5 rent/5 repair/10 CapEx) reserve bank account for monthly deposit. The account to be accessible with both signatures only.

5) A legal partnership agreement (perhaps the same as the LLC agreement).

Any comments on these thoughts and what am I missing?  Comment much appreciated!

Cheers, Buddy