Starting a family business

[Helen Lowery]

Hello BP,

I bought my first investment property 5 years ago and am a newly licensed real estate agent. During these 5 years my father, who has always invested in the stock market, has listened to my growing pains and watched with interest. The other day, he called to say that he wants to invest some money in real estate and would like to partner with me. He will be the financial partner and I will be the boots on the ground (acquisition, project manager, and property management). We plan to flip and buy and hold using a self directed IRA. His concern is that we structure the partnership in such a way that ensures equal interest between my sister and I when he passes.

We are a close family that has successfully navigated money matters and real estate in the past, so I am not concerned at all about going into business with family. We are all of the same mind about building a legacy for the next generation. However, I do need advice on how to best structure this, which is why I'm writing this post. Any recommendations on lawyers? Preferably someone who is familiar with VA law (this is where we intend to buy)?