What will be the best way to structure this venture on our side?

[Heidi Polo]

Ok, Bigger Pockets!!!

We plan to start flipping houses. This is the first time we will work with a partner, someone with much more experience than we have.

He will invest 70% and we will the 30%. Because he is a contractor and a realtor as well, he will do practically all the work (flipping and selling the property).

One the property is sold, the gains will also be split 70/30% in his favor.

He will have his name on the title and add us on what he called a "cloud" on the same title.

Additionally, we will have our agreement put in writing. He has pre-printed agreements that he uses.

My questions:

What will be the best way to structure this venture on our side? Do we set up an S-corp for tax purposes? Any other suggestions on that part of it?

What do you think about the sort of agreement that he proposes for the partnership? 

Thank you SO much in advance!!

[Aaron K.]

You are getting a great deal here, an even split for money contributed for unequal work a Corp is probably not necessary for tax purposes, but make sure you have this partnership agreement in writing.