Dividing The Profit
Hello,
I got two deals going; both involve me buying the property
1- One I buy the property another will but the money and labor to fix it then we split the profit.
2- I buy the property but the other investor is the one who gets the deal either short sale or some other way.
My question is, I will not be putting the deed in both of our names just in case the rehabbing or selling does not go as planned but how can I be fair with both investor for them not to fear or worry about there profit sharing, without having there name on the deed, because that is no option “I am not putting another person name on a deed that they have not paid a penny for(the property”
Thanks
what other assets do you have? I would suggest a simple contract spelling out the terms and requirements of both parties. It would also depend ont he $$ involved as well. If you paid 60K for a property and financed it, there is no way I would put in 20K of my "cash" without my name on the deed.
Randall
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Thanks for relying stockpro99.
the first case house is 130 k fixing 20 k,
I just don't want to be stuck with a situation where he says well I cannot afford it before putting anymoney to start rehabing then have to sell with his name on deed, I guess maybe a contract spelling the the details might be the option, but where do yuo get that type of contract at the lawyers office?
A lawyers office will generally make sure that you don't make too many mistakes with it. My father swears by his "prepaid legal" plan for realestate contracts
I myself like to do it myself, go to a stationary store, get a legal program with forms, etc.
Then when I have it made out it is a whole lot cheaper to have the lawyer review it for glaring errors than to have him whip out his word processor and do the same thing
WHo you do business with is one of the most important decisions you will ever make. I am a business prude, if they are not squeaky then I won't do business with or for them. Only a matter of time before they get around to screwing you after they screwed everyone else
PS. I generally avoid partnering with people that have less committed than I do. With the rare exception being people of exceptional verifiable character.
Best of Luck!
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