Creating a LLC for a flip in FL

[Brian Dombrowski]

I have an opportunity to take a stake in a $1M flip in Miami.   It's being lead by a friend who owns a construction company there.   He negotiated a good acquisition that never hit the market.  His company will be doing the renovations.  

About five individuals will have a capital stake in this flip. Does anyone have recent direct experience in a deal like this that can share what the wording of the agreement and the LLC should look like in FL? I have to believe this is very common. I just haven't done this before myself, and want to see what others have done before me.

A grateful thanks in advance for any shares or pointers.

-Brian

[Gabriel Amedee]

Hey @Brian Dombrowski

Welcome to BP! I am currently doing what is you are mentioning for a much smaller flip (10231 SW 132nd Ave LLC) here in Miami. Before going to an attorney I would ask the main partner if they already have an operating agreement structured.

If they do, ask if it has been signed and agreed upon by all members and then take it to an attorney prior to signing yourself. If there has been no operating agreement created I would draft one yourself or write down all the terms discussed and request everyone's approval on the terms. Then take the terms or drafted OA to an attorney so it can be finalized and tweaked. 

DO NOT go to an attorney with no terms in mind or with terms that have yet to be agreed upon by all partners; this will lead to a back and forth of revisions on the agreement thus costing you the attorney's time. 

If you or anyone has any further questions feel free to reach out. I am happy to share the Operating Agreement I have used. Happy investing!