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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Tuning your foreclosure investing agreement... Posted by Ward-CA on July 12, 2010 at 11:42 PM In Reply to: What would be most optimum arrangement for doing projects with a money partner? posted by Alfred, SoCal on July 08, 2010 at 10:09 AM Alfred, #1. Go to your 3 Day Foreclosure Manual and look at the Foreclosure Investment Agreement (FIA) behind the tab titled, “50/50 Investment”. I’m sure that with just a little tweaking on your part it will provide the kind of detailed joint venture agreement you’re looking for. #2. A real estate Power of Attorney automatically becomes null and void upon the death or incapacity of the grantor of the POA. So it won’t give you the sole signature authority in the event of your partner’s death or incapacity. So an alternative method of operating, without the need for a POA, is to designate (via your FIA document) that your passive partner is a “Non-authorized Partner” while you are the “Authorized Partner”. Here’s how we cover that item: 23. Authorized Partner. The Authorized Partner of this Partnership, Tony Stark, has the full authority to execute any and all documents pertaining to all aspects of the daily operation, dissolution, and or sale of any and all Partnership assets, equipment, or real property titled in the name of the Partnership. Hope this helps, ------------------Ward ==================== I just acquired a money partner. Have never done this before (I've always done my own projects with my own cash or financing.) We discussed and agreed upon one of the standard arrangements... he supplies all the cash and is passive, I do the work (locate, due diligence, deal analysis, acquire, rehab, market and sell)... both our names are on the deed as equal owners; and upon sale, his capital is returned and we split the profit 50/50. I operate out of an S corp and he operates out of his trust (he is the trustee as well). I'm looking for the most simple but thorough arrangement. My idea: 1) I draft a joint venture agreement between our two entities which includes the details for the points mentioned above. 2) I draft Power of Attorney docs for both of us which states that if death or incapacitation occurs to either of us mid-project, the other party is given POA to administer the affairs for the other entity in regard to any incomplete project between the two entities. (As an example: if my partner died or became incapacitated, I could sign any documents on his behalf necessary for the completion or sale of a rehab/resell project that we were in the middle of, or vice versa.) Is this a solid arrangement or does anyone have a better one? Thanks in advance, Alfred Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Alfred, : #1. Go to your 3 Day Foreclosure Manual and look at the Foreclosure Investment Agreement (FIA) behind the tab titled, “50/50 Investment”. I’m sure that with just a little tweaking on your part it will provide the kind of detailed joint venture agreement you’re looking for. : #2. A real estate Power of Attorney automatically becomes null and void upon the death or incapacity of the grantor of the POA. So it won’t give you the sole signature authority in the event of your partner’s death or incapacity. : So an alternative method of operating, without the need for a POA, is to designate (via your FIA document) that your passive partner is a “Non-authorized Partner” while you are the “Authorized Partner”. : Here’s how we cover that item: : 23. Authorized Partner. The Authorized Partner of this Partnership, Tony Stark, has the full authority to execute any and all documents pertaining to all aspects of the daily operation, dissolution, and or sale of any and all Partnership assets, equipment, or real property titled in the name of the Partnership. : Hope this helps, : : ------------------Ward : : ==================== : I just acquired a money partner. Have never done this before (I've always done my own projects with my own cash or financing.) : We discussed and agreed upon one of the standard arrangements... he supplies all the cash and is passive, I do the work (locate, due diligence, deal analysis, acquire, rehab, market and sell)... both our names are on the deed as equal owners; and upon sale, his capital is returned and we split the profit 50/50. : I operate out of an S corp and he operates out of his trust (he is the trustee as well). : I'm looking for the most simple but thorough arrangement. My idea: 1) I draft a joint venture agreement between our two entities which includes the details for the points mentioned above. 2) I draft Power of Attorney docs for both of us which states that if death or incapacitation occurs to either of us mid-project, the other party is given POA to administer the affairs for the other entity in regard to any incomplete project between the two entities. (As an example: if my partner died or became incapacitated, I could sign any documents on his behalf necessary for the completion or sale of a rehab/resell project that we were in the middle of, or vice versa.) : Is this a solid arrangement or does anyone have a better one? : Thanks in advance, Alfred [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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