Hello All,
Have a pretty quick question I’m hoping to get some light shed on. My business partner and I have been working pretty well within our area. Him acquiring properties and me handling the tenant’s and property management. The system works very well as it works towards our individual strengths and helps makes things more streamlined…except for the rehab portion.
To start, neither one of us are contractors. I recently got licensed as a NYS Home Inspector and he’s a novice real estate agent. We’re fairly handy, combined have a pretty significant amount of tools, and have more then a basic understanding of what and how to rehab a property. BUT, it takes FOREVER to get a property up and running. With that being said, we’ve decided to test out a partnership with a friend of ours that specializes in HVAC but has backgrounds in plumbing and electrical also. We figured we would give it a try on ONE property bringing him in as an external partner to “supervise” and speed up the rehab’s and split the property 3 ways. Found a perfect property in regards to cash flow, rehab needed, and owner willing to hold with next to nothing down. Should it work we may have him buy into the LLC we have.
The problem is, how do I go about formulating the agreement for this FIRST property? My partner and I are running with an LLC and our new partner is looking to go in with his individual name. Is there just a simple form we can use to put everything in perspective? I don’t want this to be verbal agreement for obvious reasons but aren’t sure what to use exactly. I made the attempt at googling a basic agreement to see what I could tailor and wasn’t impressed by what I found. Have any of you encountered this? As a one off, I would like to avoid having to incorporate my attorney and his $400 fee for a blank template for me to take home and fill out. As always ladies and gentlemen any help is greatly appreciated.
Happy Investing and best of luck!!