What's up Docs? Partnerships that is.

[Mat Lewczenko]

I wanted to get an idea of what docs everyone is using when you put together a partnership-J/V deal.

Example:
I have cash partner who will be paying for downpayment and holding costs. We will be taking out the hard money/financing and running the renovation. Plan on spliting the net profits 50/50.

What are some of the contracts you put in place for all involved?

[J Scott]

- How are decisions made? What if there is a disagreement?

- What are each of your specific responsibilities?

- What will each of you contribute financially to the partnership?

- How and when will money be distributed from the partnership?

- What if more money is needed than you anticipate? Where does it come from?

- Will anyone loan money to the company? If so, under what terms?

- What happens if one of you stops working/walks away/screws up/etc?

- What happens if the project loses money?

- What will the business structure be?

- Who has signing authority?

- How to deal with indemnification/liability of members of the partnership;

- Who will handle the money? How?

- How do things get paid for? How are reimbursements handled?

- What if one of you wants to transfer your interest in the partnership to someone else? Can you? What are the rules?

- What if one of you dies?

- When/how will the company/partnership be dissolved?