Partnership Agreement Joint Venture

[Destin E. Thomas]

Hello,

In our current situation for the first property we are seeking, I am the managing partner handling all the prep work and day-to-day operations with an initial cash capital contribution of $20k, and my business Partner, “Joe”, has only provided a cash capital contribution of $50k (no other sweat equity, equipment, etc.).

We have the P&L allocated with myself at 40% and Joe at 60% due to our initial contributions (since I contributed less money), and for each property we plan to own will have its own separate LLC.

However, as part of the on-going business relationship, we want distributions (cash-flow) to be specific to our initial investments for each new individual property we purchase since one Partner may contribute more or less of an initial contribution toward the purchase of each new property.

Ideally, we want the ownership split of the overall business to remain 50%/50%, and depending on any properties we purchase in the future under the umbrella of the business we would like the ability to allocate the P&L distributions per property.

This is because, for example, we don’t want to disrupt the overall 50%/50% ownership of the business, and want the P&L among us to be allocated per property (like 60%/40% or 70%/30%).

Since this is my first Partnership situation, does anyone have any real-life experience with these types of Partnerships and how it’s worked out for you?

Thank you for your input!!