Posted by Craig_NOLA on November 10, 1998 at 18:21:19:
Gee, I was under the impression that this was a forum for the exchange of ideas relating to REI, not an open forum for proselytizers. The guy asked a simple question.
Partnership - Posted by Eric
Posted by Eric on November 09, 1998 at 21:09:38:
My friend and I are novices to say the least when it comes to real estate investing, but you have to start somewhere. Does anyone have any advice on how we should legally set up the partnership and what are some pitfalls that can be avoided with the proper planning?
Re: Desperately Seeking Partner(s) - Posted by Anthony Valukis
Posted by Anthony Valukis on November 22, 1998 at 10:53:16:
Hi!
I’m looking for ivestment partner(s), to assist with the financing of invesment properties ( single family dwelings), on Long Island, New York. I can do all the leg work in finding the properties, fixing the properties and finding tennants. Though I’m not a seasoned investor, I know my way around the market place fairly well. Is there anyone out there that is interested in helping me get started. Maybe some of you out there were in the same position I’m currently in at one time and can relate. Thanking you in advance. Anthony Valukis. You can e-mail me at: TheValukis.Family@worldnet.att.net
The Ultimate Partnership - Posted by Mr Donald
Posted by Mr Donald on November 10, 1998 at 17:10:52:
The only Partnership you should ultimate consider is a Partnership with your God, today.
Tithe 10% of your income from all your deals to your Lord, and watch your profits, health and wealth multiply in kind.
Best Partnership is No Partnership - Posted by Bud Branstetter
Posted by Bud Branstetter on November 10, 1998 at 11:37:35:
You can have a 12 page partnership agreement coverning every contigency under the sun. Likewise you can have other entities set up to share the wealth and responsibility. But consider doing things deal by deal. If one has the money and the other the knowledge a mortgage note works just as well to share the profits. With a parnership comes liabilities of the acts of the other partner. Limited partnership can address that issue somewhat but then you have the question of whose in control. You can determine who brings what to each deal probably as well as without the formalities or informalities of a partnership. Consider using a mortgage note. It can be a participatory loan.
Re: Partnership - Posted by Jeff-Dallas
Posted by Jeff-Dallas on November 10, 1998 at 11:16:46:
Eric,
If this is your first time setting up a business entity, you?ll want to get some legal help in doing so.
You didn?t give any specifics about your plans, without which it?s really difficult to comment on, but here are some general considerations.
Basically, the three forms of structures that you?ll want to consider are:
- Corporation
- Limited Partnership
- LLC
Each have their own advantages and disadvantages which will vary depending on your unique business plan. When evaluating each entity, you?ll want to look at 3 general factors:
- Liability Exposure/Protection
- Tax Effects
- Flexibility
There?s no clear cut answer on which is best, you just have to compare and contrast each to see which fits best for your plans. For example, in Texas a Limited Partnership is the only formal entity that our state exempts from a hefty state “franchise” tax, so for us Texans a LP has a big advantage that would not apply to people in other states.
Bill Bronchick has courses which give detailed analysis and comparisons of the different entities as well as the filing forms if you want to “do it yourself”. You may want to look into these.