Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 5 months ago on . Most recent reply

User Stats

15
Posts
28
Votes
Sharad Bagri
28
Votes |
15
Posts

How to structure a partnership for real estate deal

Sharad Bagri
Posted

We are a few friends looking to invest in multifamily apartments (<4 units) in Ohio. We haven't done real estate deals together earlier. We need guidance on how to structure our partnerships. Are there templates that can work as good starting points for us. 

Also, we will be doing standard downpayments and financing. So, should we create LLC and get the loan in the name of LLC or should we take the loan individually.

Should we have umbrella insurance to protect ourselves?

Most Popular Reply

User Stats

8,153
Posts
3,695
Votes
Basit Siddiqi
  • Accountant
  • New York, NY
3,695
Votes |
8,153
Posts
Basit Siddiqi
  • Accountant
  • New York, NY
Replied
Quote from @Sharad Bagri:

We haven't done real estate deals together earlier. 


 You have not done real estate deals in the past as a group or also individually?

If no one within the group has experience buying real estate, I would suggest you each buy a property on your own and then have a discussion of forming a partnership in 2-3 years.

If you already have experience within the group, I would suggest all the friends get together over coffee and brainstorm all your concerns. Bring these concerns to an attorney for him to draft the operating agreement.

Some things to discuss would be 
1) What happens if partner A Dies
2) What happens if Partner A wants out of the partnership
3) How long will this partnership last?
4) How often will partners get paid?

business profile image
Basit Siddiqi CPA
4.9 stars
78 Reviews

Loading replies...