Posted by chet on January 20, 2005 at 24:03:10:
a couple friend and I are using an LLC.
legal boilerplate for flipping joint venture - Posted by TJL
Posted by TJL on January 19, 2005 at 18:34:48:
I am looking for a boilerplate document for a simple 2 peson 50/50 buy/rehab/resell joint venture. A friend and I have done our first deal (all cash) and are searching for the next one, but want to cover the bases for a legal agreement.
Re: legal boilerplate for flipping joint venture - Posted by John (OR)
Posted by John (OR) on January 24, 2005 at 06:27:32:
John Merchant’s comments are spot on.
Lets assume that the two of you are best mates (as the British would
say). Everything is completely fine. No falling out happens, etc.
Then the bus comes around the corner and gets one of you but not
both. Even worse is the person does not die, they just stop being able
to make decisions.
In steps the relatives. All of a sudden simple decisions and signatures
are impossible to obtain. The decent profit on the latest project starts
flying out the door daily.
In summary, the agreement is for the benefit of others in many cases.
The lenders like to know it is there, the relatives who think they can
make decisions need to know just what they will get a say in, the buyer
and the title company will want to know what signatures are needed to
complete a sale, etc.
The agreement does not have to be overly long or complex. It does
need to address the deals that do not go as planned.
BTW - Not sure about the division of labor. This could be an issue
addressed. If one is much more passive then the other you could do
deals using options or other contracts to reflect present and future
interest without having a partnership or LLC arrangement.
John