Help Hammer Out a Deal Agreement

[Jacob Simpson]

I've just completed paperwork to open a HELOC on our primary residence. I have a local REI who is in the middle of his 7th and 8th flip. I feel comfortable with his project management skill and ability to evaluate properties. We've verbally agreed to do a deal together, with me providing the money and him taking care of the project side. We agreed to a 60/40 split on profits, with the larger share going to me. We want to just do one deal together at first to see how well we work together.

I know we need to get something in writing to formalize this, but I don't know where to start. Does anyone have a Memorandum of Understanding, a Contract, a template, etc, that I could use for a one-off project and also something more permanent if this ends up working out? I'm open to suggestions. Thanks in advance for your help!

[Christopher Smith]

With the proper search terms you can probably find something pretty close online. Of course the devil is in the details. I set up an investment partnership using an online prototype template and it worked fine for years. However, you do need to understand your limitations so it's not something I would recommend unless your fact pattern is very basic, you have at least some background dealing with legal agreements and you have a partner you know you can trust implicitly.