Investor · Clearwater, FL · Member since 2009 · 181 posts · 14 votes
I'm a RE investor doing rehab/flips and operating out of a single person SCorp. My partner does the same thing. We take title on properties as our two corps with a 50% ownership share. It has occurred to me...
What if something happened to either him or I mid a project? How could I sell the property if he wasn't around to sign, and vice versa? What about my money that is in his corporate bank account, and vice versa?
Is there some simple way to deal with this? Is there some way we could put our wives into the companies so that they would have full authority to act in our stead?
Hi, you should have a joint venture agreement between the two for the deals you do and death, incapacitation, bankruptcy, etc should be addressed, giving the other rights to proceed. You might look into some cheap term life insurance to fund any buy out. Check with your attorney! Bill
Think about this statement for a moment! If anyone only has 50% ownership in something, who has the other 50% ownership and how is it possible for it to be a single person corp since a single person corp has 100% ownership for the single person.
If indeed it was the properties spoken of as 50% then Bill's suggestion will solve that as well as making sure that the surviving person is the beneficiary of the insurance policy along with a power of attorney for the business affairs in the case of death or other incopasitating injury.
jawsette: I may not have made myself clear. I own my corp 100%, I'm only person in it. Same with my partner and his corp. When we buy a property we take title as my corp with 50% equal share or ownership of property and his corp with 50% equal shar or ownership of the property.
Use Bill's suggestion and seek an attorney's advice on how to make yourself beneficiary on his insurance and him on yours along with a mutual power of attorney over business affairs.
Those things along with the joint venture agreement will give you full right to sell properties and access his accounts as well as him yours in such events.