Details on Forming a Partnership

[Jason Lam]

I’m looking at coming in on a deal with a partner where I am bringing the cash and he is doing the rehab work.

I plan on talking to a RE lawyer but wanted to just get some background of how to structure this deal.

We don't plan on forming a joint LLC at least not until we do a deal or two and if we see this working out long term we might do that. Not sure the pros and cons here.

As for this flip we will both be on the title and each have 50% ownership. As I’m bringing the money do I also put a lien on the property to secure my investment?

We’re still working out the details with my partner but I would feel more comfortable if he also personally guaranteed a line of credit for the rehab. So my invested capital would be the purchase price and a line of credit to my partner for the rehab cost. Would I put a second lien position on the property for the line of credit?

Thanks everyone