How should I PROPERLY set-up a Partnerships

[Gerald F Martin]

Good Day,

I am a new investor and new to the BP community. Hello everyone! Well I have a question regarding partnerships and/or a joint venture. Well I have a HS friend who has a general contracting company, her and her husband, and we have discussed working together in the flip capacity only. This venture we be a 50/50 equity. Basically, buy the home, rehab it and sell it. They have used this strategy 3 times and made some nice money (20k-30k) within 90-120 days. Since this is my first project, I am seeking some advice regarding what should I be looking for in an agreement to ensure both parties are protected and secure as much as possible? I have done some research on the forums. Some of my concerns and or questions;

- Is an entity structure (1224 West st LLC) required or recommended for this sort of project? We both have LLC's

- I have read about draw schedule - Can somebody elaborate about the structure?

- I have read about having the 1st lien on the property as well as be included on the home owner insurance. Can somebody elaborate about the structure?

- How would the capitals gains be taxed for both parties after ultimately selling the property for a profit? I think this should be included in the partnership.

Forgot to mentioned, this partnership we be located where I grew up at and readily visit (couple times a year plus I have family and friends who reside in the city). I don't know if this is a concern but wanted to put out as much information as possible.

I am located in North Fort Worth (Near Keller), Texas and wanted to see if there are any referrals from the community for R.E Attorneys (document preparation) and CPA's in the area that are investor friendly.

Any feedback would be greatly appreciated.

Thanks in advance

Gerald