Partnership Contract Guidelines

[Naeem Kapasi]

Hello BP nation!

I am going to buy a fix and flip with a partner and to protect ourselves, we want to get a contract between us that describes the partnership and how things should go in a 'smooth partnership'. I reached out to a lawyer and she said that she can make an initial draft for $750, and then will charge $250 for every hour she has to spend editing the contract to our liking.

Now obviously, I don't want her to spend a gazillion of hours editing. But that also means that I have to provide the guidelines of what we want to have written in the contract. All of you who know this stuff better than me, what type of things do you include in a partnership contract?

-Profit split

-work load division

-what else?

Thanks,

Naeem

[Carl Fischer]

@Naeem Kapasi

You should sit down with your “partner” write out your agreement in your words and then give that to the attorney. 

Ask questions of each other. Use examples as @Christopher Smith suggested. 

What happens if you can’t sell it for a profit? What if one of the partners are hit by a bus? What happens if you disagree on the next steps going forward? How and when will the partnership be dissolved? Will partners own the property equally? Will there be one owner and the other hold a mortgage? Budget overruns? Unforeseen problems?decision making? Insurance required? What happens with an outside law suit?  Taxes? Etc.