Posted by RR Smith on January 26, 2002 at 16:23:39:
Yes I agree with GL, I am establishing a finder?s fee for my next deal (i.e. birddog) and clear-cut roles are the way to go. This could also avoid confusion with your rehabber/contractor, just what is expected of them and what bonus they would get for early delivery.
Investing partner. Good idea? - Posted by Gordon_houston
Posted by Gordon_houston on January 26, 2002 at 11:38:14:
I have gone through the CS program about 3 times and feel I’m ready to try my hand at the game and thought that the fixer-upper method seemed like a good start. I have friend that is a great handyman and we thought we would work together. I was thinking that maybe some of you pro’s could give me some advice on buying with a partner, do you just put two names on the buyer space, how is the financing loan done, in whose name, is it better to form a corp. so liability is distanced. So many questions… Thanks in advance.
Re: Investing partner. Good idea? - Posted by Drew_NC
Posted by Drew_NC on January 26, 2002 at 14:06:04:
Get Bronchick’s “Flipping Properties” book and there’s a JV agreement in the back. Of course, have an atty in your state review it.
And form some sort of entity to protect yourself.
Re: Investing partner. Good idea? - Posted by Gerald-DC
Posted by Gerald-DC on January 26, 2002 at 12:47:29:
A joint venture is also an arrangement you might want to consider. Essentially, the joint venture is a partnership agreement limited to one specific transaction.
I only enter into joint venture agreements b/c if you form a partnership, you have so many more liability issues b/c you could be held responsible for all acts of negligence or fraud or what have you committed by your partner(s) in dealings that you were not part of or even knew about.
Also, with a joint venture, you can specify with clarity the roles and responsibilites of all the parties invloved.
Try Bronchick’s site legalwiz.com to see if he has a joint venture agreement handy.
Re: Investing partner. Good idea? - Posted by GL
Posted by GL on January 26, 2002 at 12:16:14:
Investing with a partner is a good idea especially for your first deal, if you lack the confidence to go alone. Some people never do a deal without a partner. Most of us started with a partner then went on our own on later deals.
It is not necessary to form a corporation. You can make the offer in one person’s name but make it conditional on the approval of the partner. This is a very good way. Another way is to put both names on the offer.
You would own the property as tenants in common. This is one form of ownership. Your lawyer or title company can draw up the papers and explain how it works. It simply means the type of ownership used in a partnership agreement.