How to structure a RE partnership with my sister?

[Christopher Peters]

Hello BPers,

I’m embarking on my first RE partnership with my sister.  I’m the financier and market/property analyst.  She’s the project and property manager, property manager, and networker (boots on the ground).  We’ve both agreed on a 50/50 profit share. I’m in SF, she’s in the Dallas area where we are focusing for our first deal, and we have a RE agent and a few local lenders we are working with.

1) Do you recommend establishing an LLC, or is this over complicating things for a first deal?@

2) I'd like to do multiple deals with my sister, but also explore partnering with other people in my network around the country on separate deals. If so should the LLC only be in my name, and then establish a separate contract for each deal, or should each deal have its own LLC?

3) How should the partnership be structured in terms of cost and profit sharing? If the LLC is only in my name, would I be the only one to get the tax benefits (business ownership, mortgage deductions, etc.)?

Any advice is greatly appreciated, and hope to one day be on the advisor side when I get some deals under my belt!

Thanks,

Chris