I'm partnering with Marty Boardman and his business partner on starting some rehab operations in a city that's new to both of us.

. $800 (GOI, Gross Operating Income) * 50% (rule of thumb on expenses)= $400 (NOI, Net Operating Income)... $400 - $330 = $70 (free cash flow)... $70 * 12 (months in a year) = $840 (yearly cash flow)

For instance, if your father is responsible for operation of the company but due to his illness does not complete his defined duties it might be possible to pierce the corporate veil and go after him personally.

As I suggested to, take some classes about conventional RE operations.

Through the Operating Agreement you will define authority and powers for each of you.

Where you become ironclad is in the operating agreement and insurance policies.

I was also responsible for keeping QuickBooks current, monitoring the performance of the portfolio (COC return, operating expense ratios, etc.) and sending that information back to them, etc.

OTH, if someone doesn't pay miuch attention to their business, they operate in a care free manner, are often negligent in other aspects of life, then doing all you can do to hide out might be a good way to go.This public liability razz is way over hiped IMO and insurance is your best solution.Hey, not implying our OP is paranoid, I know he has good reason to be concerned from other posts, but don't take legal advice from a CPA and don't ask your attorney to set up your accounting systems.

Bill, that response is loaded with some great info.

So for instance, the person who brings in the most money has the largest share of the company since he has a monetary loss that could occur.You will define all of this inside your company's operating agreement.