Investing in a Rental with a Partner
Hello,
My realtor has come across an investment opportunity that they would like to partner with me on. (50/50)
The property is pre-construction and as of right now we are having to deposit earnest money with delivery being expected about a year out.
I was hoping to get some advice from the community as to how I should structure this partnership legally. First thing that comes to mind is to form an LLC with my partner, however we have already given a deposit to hold the unit as individuals. Can we go back and transfer this to an LLC after closing? What other things should I be conscious of or get legal agreements for? This would be my first deal with a partner.
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
Forget worrying about a LLC. If you do not already have a partnership agreement you guys need to hire a lawyer to hammer out and draft one first. At this point in time you are adrift at sea without a life preserver. If you are relying on trust and faith the partnership is already sunk.
Partnership agreement first.