All Forum Posts by: Michael Nieves

It shouldn't cost that much to draw up an agreement. Pm me and I can send you contact Info for my real estate attorney. I just had him draw up a promissory note for a house that we had another investor put in 50k towards renovations.

Promissory notes are pretty much "fill in the blank" for most attorneys -- a title company will generally provide this to you for free (along with a deed of trust or mortgage) if you're closing the deal with them.

JV agreements are going to be much more specific to the deal/relationship, and can be quite complicated when you factor in the edge cases (what happens if someone dies, what happens if someone walks away, etc). These types of agreements aren't necessary when things go well; they are generally only important when you run into a major issue. And "fill in the blank" won't cut it for major issues.

$2K may be a reasonable investment if you can use the agreement for future relationships as well...

Good call, I contacted the lawyer Dane suggested and are currently working something out, I'm sure my partners are good people but better safe than sorry. We're running into an issue with agreeing on titling, I've been told adding my own name to the title then defeats the tax benefits of an LLC

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Originally posted by @J Scott:

Did you have an attorney create the agreement? Does the agreement discuss all the edge-case situations, like if one party dies, if one party declares bankruptcy, if the project loses money, if the parties disagree on something like listing price or sale price, what happens if one party walks away, etc.?

Sounds to me like you were very trusting with these people you don't know very well -- at this point, you can just hope that they do what they say they will or you can try to fix the situation by asking them to sign a more formal agreement that you have an attorney create for you.

Personally, I wouldn't just trust that they'll do the right thing...unless you don't care if you lose your money...

Good points! I contacted a lawyer and they quoted me over 2k to write up a joint venture agreement, which seems a bit steep. Do you have any recommendations on legal entities in the DFW area?

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Thanks for the reply, Brian!

It just never came up, before I made the purchase they did explain they would placd the property in their LLC for tax purposes but I guess I didn't understand.

Correct, I bought the property in cash but it's titled under their LLC. They have already been paying for renovations

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Quick backstory. I met my partner/agent when I inquired about a few apartment units as possible rental properties, she was giving me suggestions on how I could renovate the apartments and thus raise the rent, but being my first time I wasn't comfortable. Later on I approached her about possibly partnering on a flip, we agreed on a 50/50 split with me purchasing the property and her and her partner paying for renovations.

My worry is that my name is not on the title or in the LLC. We did write up an agreement stating I'd get my equity back+50% of profits, but I'm not sure if I should be adding anything else for my protection? Both partners are licensed real estate agents

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I've been looking into investing in rental properties for additional cash flow, looking for around 13-14%. After applying the 50% rule, I've noticed that little to no properties offer much cash flow; not more than what I'm getting in mutual funds anyway. I was wondering if anyone has experience in the DFW area. I would be financing and am also eligible for the VA Home Loan

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All Forum Posts by: Michael Nieves

Michael Nieves has started 7 posts and replied 25 times.

Post: What else should I do to protect myself in flip partnership?

Post: What else should I do to protect myself in flip partnership?

Post: What else should I do to protect myself in flip partnership?

Post: What else should I do to protect myself in flip partnership?

Post: Needing help finding multi-unit properties in DFW