Real Estate Flipping structure with Investors

[Bryan C.]

What tax form should I issue an investor if they provide the cash for the deal and earn a portion of the profits?

This could be a 1 and done or could be a long term structure...how would you structure the partnership or JV and why?

[Anthony Dadlani]

@Bryan C. 

If you structure it where both the investor and operating partner are on the LLC then I it would probable be a K-1 at the end of the year. If just one person owns the LLC and the other has a profit sharing agreement which is typically what we do with our operating partners.....we issue a 1099 for their annual disbursements. Obviously consult with a tax professional for your specific situation. Hope that helps. Best of luck in all your endeavors.