OfflineI have been developing many relationships with other investors and want to know the best way to structure this particular scenario.... fellow investor will have short sale under contract thru an agent and I will provide the buyer and we plan to split the profit 50/50.
Any suggestions on the best way to structure this?
Thanks.
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You may want to consider a few different options here. If it is just one deal you can have a written agreement between both parties outlining everything according to your agreement. That way there is no confusion latere if a questions comes upa bout something upexpected. If you are palnning to do more than one deal you could look into a "Joint venture" partner agreement or formering a LLC. Your attorney and CPA could proabably cover the advantages for your specific situation. Good luck with real estate investing. Believe and Achieve!
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Shortly after posting this, I did consult with my attorney and he basically said the same thing you did about having a contract specific to that deal. Thanks for the feedback Indiana-Joe.
Jennifer
"The greatest mistake you can make in life is to continually be afraid you will make one."
Elbert Hubbard
Kimmyj & myself just set up an LLC together & doing 50/50 split.
We will update on our progress together soon.
Jason S.
San Diego, CA.
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Especially when the chemistry to work together is not there. People could be nice to talk to, but if work ethics and work personalities don't match and expectations don't match, there's a fallout.
I don't know how you guys plan to structure your joint ventures, but treat it like a business, a real business outlining how decisions are made and how deals are exactly split. And yes, get an attorney to craft the partnership agreement if you've never done one before.
If you already have a real estate agent and it's working out, keep that real estate agent, particularly if the agent knows about contracts, real estate and doing joint ventures and everything that is necessary to help you succeed--you're lucky you have such an agent, cherish that agent and treat her with respect. There's no need to use more than one agent ever unless it's geographically impossible to service all the areas you want covered. When you put agents on the offensive and feeling that they have to compete with a fellow agent, you are going to lose the better one because the better will drop you.
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Always seems to amaze at the amount of information available on site. Thanks for sharing.
Sandra
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