First deal under contract and I have private lender question

[Account Closed]

Hello fine BP folks,

I am pleased to say that after many months of education and a few offers not accepted, I finally have a property under contract.  It looks like a colleague of mine will invest in the deal.  If he is not on the mortgage, what kind of agreement do we need to paper between us?   Does this need to be done with my real estate attorney?  Our deal is pretty simple 50/50 split but not sure how to draft the deal.  Any advice much appreciated.  

[Allen Fletcher]

@Account Closed

First and foremost sit down with your partner and work out the details on each party's duties, resources invested, returns, etc. Write everything down and make sure you both agree to every detail. Then you take these notes and turn them into a contract (for a one-time "test deal"), LLC operating document (for a planned longer term partnership), or other document that you can have attorneys review and get notarized when you sign. I would suggest, since this is a first deal for both of you, that you write it out as a contract that will be fulfilled once the property has been handled and the profits split as determined in the contract. This will allow you both to work as a team, provides legal recourse if necessary, and will come to a close at a predetermined point ensuring you both can get out without a legal hassle at the end. Make sure that you have a clause in the contract that will allow you to amend it as you need and you should be good for this first deal.

Does that help, or do you have more specific questions?

Allen Fletcher