Signed A Purchase Contract...how To Structure A Partnership?
I've got an agreement to purchase signed from a seller. There's no mortgage on it, and she wants 20k. She needed to do this fast and closing will be in two weeks.
Now I found a guy that will supply the cash, and he wants a partnership. 60/40, I get the 60 =)
This place needs a lot of work, and we don't really want to do any of that so we'll be looking for a rehabber to buy it. Either that or we'll put it on the MLS as a fixer-upper.
Anyway, what's the best way to structure our partnership? A couple of things that confuse me are:
1. How to make sure we are each responsible for only our share of capital gains tax.
2. I signed the contract as purchaser...he wants something in writing that safeguards his %40 interest in profits.
3. What does his level of involvement need to be? He's more hands off. Does he need to be there at closing? (we're closing at a title company)
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