How to split properties with business partners

[Jorden Glasco]

2 friends and myself are wanting to start investing in real estate, but we are posed with the question of how to evenly split the finances that go into our properties.

We've thought about promissory notes, starting a "corporation" and getting loans under that corporation rather than under us as individuals, or each person takes turns paying for the properties (although that may not work because we are planning on using the BRRRR strategy).

Do you have any ideas as to how we could evenly split up the payments for properties?

Thank you!

[Mitch Ferraro]

@Jorden Glasco, I'd recommend getting a proper legal partnership in place before moving forward on anything.  You'd want to find a real estate attorney in your area that can advise and draft this up for you. Even though you are friends and I'm sure you trust each other you want things in writing before you start purchasing any properties. In our business, we have 4 equal partners and everything is divided up in quarters. Once the business starts generating money you then can decide how much goes to each partner, what goes back into the business, what gets set aside for taxes, what gets set aside for expense, etc. Hope that helped. :)