Best way to setup and buy with partners

[Erick Harbert]

Hey BP,

In your opinion and from past experiences what is the best way to set up a partnerships and agreements to buy rental properties SFR and Apartments with others? Looking to do a bunch over the next few months and want some input on best way to protect ourselves and those who partner with us.

Should we set up new LLC's, partnership agreements, separate accounts or joint account for property, etc???

[Brandon Parent]

Erick,

LLC's and Separate Accounts. Insurance, contractual agreements between all parties stating all details, hold harmless agreements and make sure the agreement covers the worse case. Each investment is different so there is no standard. But seek out an attorney and find someone that can give you sound financial advice in real estate investing for you and you partners per investment. A couple big mistakes I've worked on through out the years are that the partners contrtualy do not plan the future /exit strategy and never plan for the worse case in the contracts, they never addendum the chages over time and forget some hold harmless agreements.

Thanks,

Brandon Parent

www.reapprofessional.com