House Flipping - What type of Contract/Agreement do you use?

[Amber Rueda]

I am looking into flipping a house with one other person. We will both be bringing in money and be doing renovations. What type of agreement should I put in writing? Where can I find a sample one?

Thanks!

[Will Barnard]

You have two basic options.

1. Form an entity either LLC or S-Corp (best for this situation would be an LLC with S-corp tax election) - check with your CPA as I am not one. Within the LLC is an operating agreement and your RE attorney should draft this. DO NOT use some store bought operating agreement or use someone else's without having it looked over by your attorney before using it.

2. Each of you take title as tenants in common using each of your own entities and then use a joint venture agreement (JV). This too should be drafted by your RE attorney.