Partner Investment Question

[Jake Wernitznig]

I bought my first investment property in the US with an investment partner, but I did so with a conventional mortgage. I am the only one on the mortgage documents and title to the home. While I'm the only one on the legal documents at this point, I made an agreement with my investor that they would be entitled to their share of the profit from the property.

In your opinions, what is the best way to entitle this person to a percentage of the property? I want my partner to feel assured that they have a legitimate claim to their share. 

[Account Closed]

Hello Jake, 

I to am a partnering with an investor who is the financial partner that's out of state, I am the boots on the ground / project manager for our deals. I find the projects then send him the information, he then decides to either go forward or on to the next one, when we acquire a property he funds the rehab and I complete it. After it sells we have agreed to split the profits and both of us wants to make sure each one feels safe with this arrangment that each one will do as they say. To accoplish this we decided a JV contract for each property was enough for us to feel comfortable that each would get paid in the end. As we move forward we have talked about doing a joint LLC and purchase the properties under that entity. I hope this helps and I'm sure there will be more suggestions from other members, I'll be following this thread, maybe there's a better way ? For now it works for us .

Wishing you the very best on your investment.

God Speed 

Michael Short