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Updated over 8 years ago,
Partnership advice needed
I have an LLC that my business partner and I own 50/50. The partnership is absolutely great as we compliment each other. I'm a Realtor, find deals, evaluate, buy, sell, find tenants, pay bills. He manages the projects and does quite a bit of the rehabs himself. We've bought 11 properties in the LLC but currently only have 1 property which is tenant occupied and it's free & clear. The partnership has worked very well in the past and I definitely want it to continue....but....
We are at different points in our life. I'm 36 and he's approaching 60. I want to "BRRRR" building my portfolio via cash flow and want to strategically grow without paying capital gains. He wants the big paychecks from flipping.
Has anyone experienced similar crossroads? Is there a creative solution out there so we can both achieve our goals while maintaining the partnership? Should I consider paying him as a contractor based on the success of the project (he gets the big paycheck) while I get the cashflow?
Any thoughts would be greatly appreciated.