Posted by Lionel on September 02, 2005 at 17:30:05:
I’m facing a similar situation (as the money person). What should be the legal relationship between us? I will be paying for the houses in full with cash from my C corp and put title in land trust. How do we implement the “who does what” contact and the money terms (50/50, cash calls for me, etc.)?
I bring the money . . . he does the deal - Posted by john
Posted by john on August 31, 2005 at 17:07:38:
I ran into a potential partner that seems to be pretty experienced with doing SFRs. He’s looking to partner up and do a 50/50 split with someone who can provide the financing, and he’ll do all the rest and we’ll either flip or cash out and rent.
What steps do I need to take to put myself in the safest position possible? Is it a bad idea to use his lenders, crew, etc. Do I form a JV?
I think it’s strange he’s seeking money partners if he’s done so well. I suppose his funds could be tied up for now.
thanks,
John
Re: I bring the money . . . he does the deal - Posted by NWA REIA
Posted by NWA REIA on August 31, 2005 at 23:01:06:
It is not unusual for someone to look for credit partners in doind deal like this. If you feel comfortable with this guy and he has a successful track record then you should do it. Watch yourself though when using ‘his team’. Make sure that they are reputable, and also have a long track record of legal and reputable deals behind them. I am currently using a credit partner on a SFR. they are funding the deal, putting up all money for repairs, and accepting a $7000 fee for the use of their credit. I in turn payoff all loans and expenses, and walk away with the remainder of profit form the sale of the house. Sounds like you have a good partnewr on your hands. He can make you alot of money for very little work on your part. Just be sure to watch the accounts, and expenditures.