Let's say I want to do a simple real estate deal with a co-investor. For sake of example, let's assume the initial cash outlay (down payment, closing costs, etc.) is $100,000. I would contribute $50,000, and my co-investor would likewise contribute $50,000.
However, although only contributing 50% of the initial capital, and additional contributions would be made 50/50, I would be entitled to 60% of the cash flow, 60% of the taxable income/losses, and 60% of the equity in the property in return for orchestrating the acquisition of the property and handling all legal, tax, accounting, and management issues pertaining to the property.
Questions:
1. Would an LLC or an LP make more sense in this case?
2. Are there standard LLC Agreements covering this sort of arrangement? I imagine arrangements like this happen all the time, right? Since the deal is so simple, I was hoping I could find some standard language somewhere and not have to hire an attorney.
