another noob! help!

Hello! I’m pretty new to the wholesale game and real estate as a whole, I’ve been researching for about a year now and have recently taken some big strides like contacting potential sellers/buyers, networking with likeminded people and even making my first offer! (Small steps i know but far from where I was!). I’m 22 and have a passion for real estate and probably more confidence than i should! before I continue I’d like to assure everyone I’m not a ‘dreamer’ that will lose interest after a night of sleep. I’ve slept on this many many nights and have decided I WILL make this work for me one way or another. Any/all advice is welcomed and will be put to use!!

Two questions to start, I’m meeting with a potential partner later this week to discuss a partnership and I’d like to know what I’m walking into. What should I be cautious of? What kind of paperwork if any should I be expecting and how should it be setup? Obviously 50/50 but on paper how should this look?

Also, what kind of taxes do we pay on these profits? I remember reading briefly about filing under capital gains ending up being taxed about %45 all said and done? Any input is greatly appreciated! Hopefully you’ll see me posting about my first deal soon!

Not all partnerships are 50/50. It really depends on the role of each partner. Before talking money, you need to determine the role each partner will play. How much skin is in the game. What are the partnership goals? What is the timeline for the partnership? When and how will profits be realized? What happens if these goals are not met? What is the worst case scenario?

Once you can sit down and freely discuss this business plan… then and only then should you talk profit split. For someone who is just starting, I would definitely recommend having an attorney draft your agreement. You want to make sure that it protects both investors - yourself included.

What type of investing do you plan on doing?. If you’re looking at wholesaling you don’t need a partner.