All Forum Posts by: Vincent Salazar

@Joe Homs Thank you for the good advice. It does seem we have a good relationship for a partnership, and I'm hoping this agreement will be good practice for my next one. I'll probably draft one up on my own, go over it with my partner, and decide together where to proceed. This way we are both communicating openly and are set on the same goals. If you have any other advice on what problems may arise, I'd gladly like to know. Thanks again.

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Originally posted by @Andy Eakes:

@Vincent Salazar Hey Vincent. The law questions are best left answered by lawyers, but I can provide a suggestion on the rehab side that you can take or ignore. All of the rehab cost splits should be agreed upon by each of you before hand. If the partnership is split 50/50, then the same for rehab costs seem reasonable. In my own experience in San Diego, I have set up a bank account for my LLC and each member can deposit equal funds into the account at the same time, and then the pot is used for rehab. That way everything stays within the business, and you don't have to awkwardly hold someone accountable for an unpaid bill (should that situation arise).

Andy, Thanks. I never thought to use the bank account to hold the funds we are using. That way we can keep track better. Thanks for the advice. Her and I are still going to go over these details, but it will be good to come to the table with a good plan.

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Hello,

I am in the process of forming a partnership with my Realtor friend, to flip my first house. I just had some questions if anyone has similar experience with my situation.

The deal we have in place so far is, she will be the agent and provide insight in the house we choose. She has more experience in this, however is still pretty new herself. I am creating an LLC in order to secure funding for our deal, and we will be splitting other associated costs that come along (i.e. for rehab). She will also be offering her networking, and I will be as much involved as I can, so that I may learn the process better. As of now, we both are friendly, with same goals, and work well together.

My question is, what is the best partnership agreement we should form? I looked into websites like, LawDepot.com, that offer a simple drawn up Joint Venture Agreement. I was then going to have a Lawyer review and tweak what they seemed fit. Is this a good idea?

Also, should I insist on 50/50 split of costs? I was thinking of just tracking all expenses (hers or mine) and using profits to pay all expenses, and then splitting profits 50/50. That way, we won't have to worry about waiting on other persons funds, and instead, pick and choose what each of us can pay for and settle up at the end. How does that sound?

I want to keep in mind, that I am not trying to get rich quick here. My ultimate goal is to learn as much as I can, so I can be better for the next one. I'd like to one day be more independent in these ventures.

Thank you for your time and input, and appreciate any words of wisdom

-Vince

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All Forum Posts by: Vincent Salazar

Vincent Salazar has started 1 posts and replied 3 times.

Post: Forming a partnership

Post: Forming a partnership

Post: Forming a partnership