Forming a Partnership

[Cody McGonigal]

Hello BP community,

I am forming a 50/50 partnership with a fellow investor. We plan to enter the multifamily space, purchasing properties with 8+ units with the potential to add value and attract higher quality tenants. 

We have verbally agreed to enter a partnership where everything from financing to building the business itself will be equally shared. I am reaching out to all of you for advice on how to to structure this partnership in a way that leaves us both comfortable and reassured that if things don't work out, our lives won't be torn apart.

Thanks in advance,

Cody McGonigal

[Braden Smith]

You need to consult with your attorney and them draw up an operating agreement that spells out each of your roles, duties and responsibilities as well as consequences for not performing, and how the company is to be dissolved if it ever needs to be. Also be sure to have language in there that spells out what happens in the event of illness or death.