Real estate partnerships

[India Brown]

How do you structure real estate partnerships?

Example: partner one brings the funds while partner 2 does all the work and profit splits are negotiated?

[Tanvir Sattar]

Hi @India Brown. I would go with an LLC. Divide ownership of the LLC by calculating total cash investment by the members. Give each member an ownership stake equal to his cash investment. Two members contributing $30,000 apiece would each receive a 50 percent stake in the company.

In your example the non-cash member would need to work out percentage of ownership with the funding member. It really depends on the relationship and the workload.