Partnership agreement nuances

[Ryan Kraemer]

Hello!

I am looking to enter into a medium sized multifamily deal with a total of 4 partners. An attorney will be used to draw up the legal documents and I have a list of stipulations that are to be proposed/entered into. I am looking to see if anyone has any advice in regards to the terms that should be put into the business agreement when there are 4 partners involved. A few things that have been discussed are:

-Ownership percentages per investor

-At what point in the future a refi will be done and at that point if a member wants to be bought out, they can be bought out at the appraised value. 

-After that refi I was thinking every 2-3 years a partner could ask to be bought out and if no one member wants to buy them out then the can forcefully sell their share of the business to the other partners.

A few questions that I have for everyone here;

-What amount of insurance would be appropriate for the business and should I also have an umbrella policy for myself?

-Any recommendations on how money should be handled as far as paying anyone that does work on the property as well as how/when profits are paid out?

If anyone has any thoughts I would love to hear them! Thank you!