We sometimes refer to foreign entities as out-of-state entities to reinforce the concept that entities formed in other U.S. states are foreign entities, as well as entities formed outside of the United States.Registration RequirementsSection 9.001 of the Texas Business Organizations Code (“BOC”) requires the following types of foreign entities to file an application for registration with the Texas secretary of state if the entity is “transacting business” in Texas: * corporations; * limited partnerships; * limited liability partnerships; * limited liability companies; * business trusts; * real estate investment trusts; * cooperatives; * public or private limited companies; * any other foreign entity that, if formed in Texas, would be formed as a corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust; and * any other foreign entity that affords limited liability under the law of its jurisdiction of formation for any owner or member.Other laws or circumstances may also be reasons for registration. * Section 201.102 of the Texas Finance Code requires an out-of-state financial institution to register with the secretary of state before opening a branch or other office in Texas. * It has been the practice of the Texas Department of Insurance to refuse a non-resident agency license for a foreign entity unless the entity has registered with the secretary of state.

I will ask that any commissions made be added to the partnerships profit and divided out since I do believe splitting profits/losses based on our equity contribution is the easiest way to determine a fair split and that we shouldnt get "paid" unless we actually make money.

Is it a partnership?

Therefore in the real world you market that house as either a partnership opportunity or for $1M and then go tell all your friends how you just made $500k on one deal!

They don't see the need to set up a separate entity for every partnership, but I haven't ever done it personally, so I can't say - just what I know a lot of folks do.

Or advertise your deal for partnership.

You may find that as a college student you may not be able to purchase much real estate without partnerships (perhaps your dad like you mentioned at first) and you may find that in 3-5 years when you really look to start scaling we may have already crashed, stagnated, etc and be poised for another boom cycle.

Interested as well in partnership idea that you mentioned and i was wondering where specifically do you want to invest ?

As to question #4 Yes partnerships are formed all the time.

In February of this year all the hard work paid off and I found an Investment company offering JV partnerships flipping houses!