It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

Key terms and conditions to negotiate to ensure a fair and beneficial agreement for both parties.3.

LLC member (Limited partner from a legal standpoint but with management duties)Becuase of the LLC's limited partner's confusion, under the proposed regulations, subject to an exception noted below, an interest in an entity would be treated as an interest in a limited partnership under Code Sec. 469(h)(2) if:-the entity in which the interest is held is classified as a partnership for Federal income tax purposes under Reg § 301.7701-3; and-the holder of the interest does not have rights to manage the entity at all times during the entity's tax year under the law of the jurisdiction in which the entity was organized and under the governing agreement.

These can often lead to meaningful connections that turn into investment partnerships.Legal and Ethical Considerations: Make sure any partnership agreement is vetted by a legal professional to protect all parties involved.

If the property is owned by you personally, use a personal account unless you have an agreement where the LLC is the property management company.

My attorney explained that I may have to refund some of their money if I decide to move forward on terminating the agreement.

This sounds just like a Release from Agreement that I and Bill Gulley have posted about elsewhere on BP. http://www.biggerpockets.com/forums/103/topics/554...

Here are some of the highlights: quickly set up bank accounts for each property and sub-accounts under those for things like security deposits and CapEx; virtual credit cards tied to each property; quick transfer of funds; ability to send money back and forth to tenants (some platforms are for collection only but won't let you send your refundable deposits back to your tenants); easily categorize every transaction into IRS Schedule E categories for reporting taxes; ability to split transactions; tenant management from vetting to drafting lease agreements to collecting rent.

My cousin who has 3 rental properties manages his own units and has all rental agreements on month to month and has all long-term tenants.

Seeking advice on how to formalize an agreement with a partner to flip a house together and how to hold title assuming that we would not be creating an LLC until after a "trial period".