JV and Operating Agreement Questions

[Amanda Swanson]

We are currently working on a partnership opportunity for a quad. The person we are trying to partner with found the property and needs capital to BRRRR it. We offered the capital in exchange for 30% stake in the property. The individual agreed and sent us a poorly written JV agreement that my lawyer said not to sign. He then sent us a generic operating agreement that my lawyer also advised was not a good document to sign. My lawyer is willing to draft the documents but that would be a cost to us. What is customary here? The individual doesn't want to spend money to have proper documents drafted and my lawyer says it will cost more to review the generic one online and add the necessary provisions than to draft one. But if he drafts it and the other person does not agree that is money wasted. Looking for some thoughts on this and lessons learned as this is the first time I am trying to partner on a rental.

[Eamonn McElroy]

Have your lawyer draft the partnership agreement.  You're the capital partner here.  If the "potential" partner refuses to sign it or raises a fuss, walk away and consider yourself lucky to be out just the cost of the partnership agreement.