Hello all. I'm working to purchase a few smaller multi-family apartments and in order to do so I'm looking to partner with an out-of-state investor. I've discussed this with a couple investors I've worked with and want to move forward. My partner is going to bring more of the upfront cash but I will have a significant amount in it as well. For the down-payment, the other investor would be bringing approximately four times as much capital as me but I found the deal, am the 'boots on the ground', I'm licensed, will be managing, doing maintenance, watching over them, etc.
We've decided to start a LLC and we're planning on coming up with a very detailed operating agreement to outline all circumstances. I'm wondering what I should be most cautious about when drafting this agreement. I really need the capital in order to purchase all three of these buildings.
Any suggestions for the operating agreement when the out-of-state investor is bringing 75% of the down-payment, but you're going to be doing a majority of everything else? This will be my first partnership and I want to have everything covered. We've established a good working relationship and both want to hold these for the long haul. Since these are in my market, I want to be able to buy the investor out in the future. Any feedback/insight will be appreciated.
