Structuring a partnership

[Aron Rodriguez]

Hello all, I found this great deal and going in 50/50 with a trusted friend. 425k offer with an ARV of 600k based on sold comps within 3 months. The challenge on this property is an unpermitted room in the garage and kitchen/dining room renovations.

How did you structure your partnerships and how did you set up a legal partnership agreement? Any information on this is much appreciated. Thank you.

[Karen Margrave]

If you do a search of the forums, this question has been asked a zillion times, so you can find various answers. Whatever you end up doing, make sure everything is in writing, know who is going to put in specific amounts of money, who will do what, what happens if things go over budget, how any profits are split, etc. Once completed, what happens, are you hold for LTR, selling? If it doesn't sell, what then? Have an attorney draw it up so there's no stone left unturned. Friendships fall by the wayside on bad deals. Good luck.