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Updated almost 2 years ago,
Business partnership buy in
I am exploring starting a business partnership. Property Specifics: 2 properties in KC, they need $15k each to finish fixing them and get ready to rent. Long term rent the properties will bring in $200-$500 in monthly cash flow. Mid-term they will bring $500 - $800 cash flow. The properties are currently owned by my potential biz partner. I will fund the $30k to complete the rehab of both properties and the value will go from $130k to about $170k in value on each property, which I will partake in the instant equity. For this equity I will pay my partner $20k. I will be responsible for funding ($50k total) and setting up the rental details etc. My partner will be responsible for the rehab details and finding new deals. We will have a 50/50 ownership in the value of all deals and 51/49 voting will go in favor of my partner to avoid a stale mate. We will have a legal contract drawn up for the two properties and the new LLC biz partnership. Thoughts on the deals and the cost for equity and anything else I'm missing? This will be my first deal. Thanks for any help!