Partnerships Without Headaches

[Nghi Le]

I want to do a partnership with a few people, but I hate complicating things, especially as a new investor who's already overwhelmed and working a full-time job.

I've been recommended to have a contract on the side to lay out the terms of the partnership, but if our partnership terms change (and I imagine it would from deal to deal), would I have to go through an attorney each time for that? Same (or perhaps even bigger) issue with creating an LLC and having the partnership depicted in the Operating Agreement.

I have a good amount of trust in people that I would consider to do partnerships with. Could we (2-3 people) just enter into a PS&A contract with all of our names, and then split up the profits after?  What are the risks to putting all of our names on title without a contract, both from a legal and tax perspective?  Would it confuse the title company at closing?  Would it confuse the CPA who takes care of my taxes, even though I'd show all of my split income/expenses in Quickbooks?

[Boyd McClean]

Retain the services of a seasoned real estate lawyer. If you can find one with SEC experience all the better.

Go to local real estate clubs and ask the leader for references.

As mentioned above do a small one first and see what happens.

The biggest problem will be the blind leading the blind. You are

relatively in experienced. I would look for a mentor. Yes you will have

to give up some of the profit but that is better than loosing your shirt.