EQUITY SHARING

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I have an opportunity to put together an Equity Sharing Program with two people. One with knowledge and the other with money. Do you know of any good wordings for the contracts that gives both a chance to make money.
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Comments(5)

  • Birddog112th October, 2003

    I would bring it to a RE attorney, contracts arn't somthing that should be drawn up without proper knowledge. Don't want anyone to get burned, or to get into any kind of legal trouble

  • maverickstar13th October, 2003

    I went to Marshall Reddick's seminar and he has one. I just can't find my copy.

    Attorneys are OK, but unless I have a deal in process I do not want to spend the money and the "Money" person expects me to have the contract already.

    Marian

  • JohnMerchant13th October, 2003

    Legal forms are all too easy to find, but unless you have the legal knowledge of what you need in such a contract, finding forms would be akin to going into Home Depot and looking for tools or hardware for a job you haven't seen yet.

    Risky for you? I'd say yes.

    Cheap idea: How about asking money guy to let you see such a K that he's used & likes, that contains clauses he wants and needs?

  • mortgageman13th October, 2003

    I am not an attorney, and I know what you mean about going to the attorney with something in hand.

    You could draft the agreement to the best of you ability and put a clause in bold right at the top indicating that it is a a preliminary non-binding draft of agreement giving yourself 7 business days to have preliminary draft reviewed for legal soundness by your attorney, at which time your attorney will draft actual contract to be signed by all parties.

    Just a thought!

  • maverickstar13th October, 2003

    Thank you for your idea. I really like it. My "money" person has an attorney on call but I did not want to proceed that way. He expects me to have my own forms. But giving each party 7 days to decide takes me out of the pressure point. A non-binding contracrt is easier to sell. I will let you know how this one goes. It is a 6 unit apartment building in San Bernardino, CA.

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