Structuring a partnership for a buy-and-hold investment
I have one buy-and-hold rental investment in Milwaukee, and I'm currently looking for my second deal. I currently invest on my own and have no partners. I have an acquaintance that would be interested in partnering in a real estate deal in the future. There is a particular RE investor on YouTube that speaks of partnering with other people using their credit after a person has maxed out on bank loans under their own name (usually 10). I know commercial financing can probably be secured, but let's look past that for this topic.
How can I structure the fine details of a deal by partnering with someone through their credit and for the loan to be in their name - should we form an LLC or another entity? How can I get paid and how would the contract work for that? Would he write me a check every month? Should we have a joint bank account? What kind of partnership is this called, by the way... equity partnership, credit partnership? Can I keep my name off of the loan by giving him my portion of the down payment?
I know I asked many questions, but I was unable to find some of this info when I looked through other resources regarding this topic. Most of them cover % profit splits, etc, but none of them get into the deep details of getting paid and how to set up a contract between the partners.
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Ah. Yeah, seems relevant ;) For how to get paid, that depends on how you want to structure the deals. For your other questions, you may want to ask a real estate attorney. I can answer generic questions, which the article kind of does, but for fine details, I think you're safer talking to an REI attorney.