Hi,
A friend and I are going to start a real estate flipping LLC, he's done 100s and owns a larger GC compan, I'm newer to it. We are beginning by contributing 100K each and future capital contributions will be 50/50 however profits will be 1/3,1/3, 1/3 because his business partner is his brother who handles all the logistics etc. I am essentially just a silent partner but also help scout new properties so find this agreement fair.
For operating agreement my concern is liquidity, I like the idea of at any time getting back my contributed capital. Profits I can understand perhaps only set intervals like every 6 months or if not a penalty to access whenever. I guess the idea is you want some disencentive to access the money too much too often? He thinks of it more of a long term play whereas I do too but also like the idea I could access my $$ if I wanted/needed to. Am I missing something?
Also, since we get 1/3rd profit but I'm down for 1/2 contributed capital, any tricks on that for accounting/tracking purposes? If all goes well before long the LLC bank account is going to have a lot of money in it beyond each of our original contributed capital, of which we are entitled to 1/3 of each.
