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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] How interface with a money partner on rehab projects? Posted by Alfred, SoCal on July 19, 2010 at 12:13 AM 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: : 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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