First rental property purchase with partners

[Account Closed]

Hello there! ​We are a group of 3 people who is looking to buy the first rental property in New Jersey or surroundings. It's been a few weeks that we are gathering information as we would love understanding the process step by step. It looks like a LLC will not be the right move to make at the beginning (for mortgage and fee) but it could become convenient after the purchase. Or, an umbrella policy would be sufficient at this stage and protecting all of us? We further understand that we will definitely need a lawyer and an accountant to assist us on this process - actually hoping to increase our network with Bigger Pockets :-) Thanks for your attention and looking forward to your feedback!

[Anthony Wick]

I'm no attorney, but some of things I'm doing in my LLC with partners...

1. The LLC docs govern how decisions are made, but not the actually decisions.
2. A management agreement will be used to cover the decisions made. 
3. Management agreement will cover how it's decided which properties to buy, cost, maintenance, expenses, establishing a reserve account before partners can take a profit, etc. Anything you can think of from costs to search for a property to an exit strategy. A to Z, all in writing. The partners can't argue (or it will be harder) if it's all in writing and filed with the state. 
4. We will have a buy/sell agreement that governs when a partner can leave, and how that will be covered. i.e. Can the other partners have a right of first refusal on buying out partner? You don't want a stranger just buying into the partnership. 

I didn't even attempt any of this on my own. And, my document is still being drawn up by my attorney. I asked my banker to recommend both an attorney and a CPA that the bank trusts and deals with all the time. I am new to this LLC and partnership, but the attorney and CPA are not. That's the important part.