Partnership LLC for House Flipping

[Andrew Hunt]

Hi all -

Do you have any tips on the best legal structure on partnering for a fix and flip?

I met with another rehabber yesterday, and we'd like to pool funds together. We'll be using hard money on most flips. Our plan was to both personally guarantee the loans, split the costs and split the profits on each flip.

I believe a simple two member LLC is the easiest way to do this, filing 1065 at the end of the year and schedule K. Then, we'd simply sign an agreement for each project outlining the financial responsibility and ownership percentage. (I know these agreements can get quite detailed in the "what if" scenarios, but best to keep this simple to start).

Does anyone have any tips here?

Thanks!