How to Form a Partnership

[Mike Romano]

Hello,

How to establish a partnership with an individual who is interested in learning how to flip properties and wishes to contribute capital. I'd like to understand the process of creating a Joint Venture (JV) contract for this arrangement. The potential partner intends to invest 50% of the funds required for the flip, In addition, he wants me to teach him as well.

I have done over 7 flips my self, but now I want access to more capital.

I would greatly appreciate any help. 

Thank you so much!

[Shiela R.]

Hi @Mike Romano.  Love that you've done 7 flips.  Congrats!

I'd need more info to advise on how to structure the partnership.  Are you doing all the work? Are you acting as a GC or know the timelines, costs, etc for the project? Do you demo or hire a team?  Do you design or hire a designer?

I have learned a JV is simpler than creating an LLC. There is no bank account and EIN required. I'd definitely hire an attorney who knows about real estate partnerships in your area.

As for the capital partner learning.  That is a tough call.  Most of the time people have money or knowledge but not both.  IE they are skilled with carpentry know how but not building up funds. Inevitably, he will learn no matter what. What specifically is he hoping to learn?