I read alot about people wanting to partner up on certain deals… for example if someone at a REIA club has good credit and they want to partner up with a rehabber to rehab a property… or let’s say 2 people have a little cash and want to buy a house, rehab it and then sell it for a profit… On these type of partnerships, is a LLC or other type of entity created for that one deal and after the deal is complete the entity goes away? Do you need to create an entity for a “one deal” situation or just some type of contact between the 2 individuals? Thanks for the help.
one possibility which i have done is to use a title holding trust and get an EIN number for it and treat it like a partnership.
partnerships don’t have to be “registered” with the state. You can easily draw up a partnership agreement for the deal, do it, and fold it when you’re done. Cheaper and easier than a registered entity, but no personal asset protections or taxation choices, either.