Those who develop a real estate partnership contract must be knowledgeable and experienced in the legal language contained in the contract, which may mean that it is your best option to rely on it. Regardless of this, you should meet with a lawyer if you ask about what you should include in a legally binding agreement, especially when adapting a real estate partnership model. You are well equipped to guide you and your business partner through the legality of potential contracts. In the future, you may need to rely on your partnership agreement as part of a legal situation to ensure that it is properly written and maintained in court. It is important to remember that not all real estate partnerships will work. However, defining your partnership on the right track from the outset and developing a limited liability company (“CLL”), also known as the Operating Agreement, will help establish this partnership for success. Not every state requires an LLC`s enterprise contract, but without an enterprise contract, your business exposes significant risks, such as. B increased risk of litigation in the event of a commercial partnership dispute. Payments – This is another biggie, because it will tell you how everyone is paid, which is probably the most important aspect. You need to determine at the very beginning how to allocate the profits as well as the losses you may suffer during the investment. In the following video, Ron Rohde talks about partnership contracts with Matthew Green, an experienced real estate acquisition professional.
In preparing your agreement, you will find a serious lawyer who can help. Even if you prefer to write it yourself and save on trial costs, with a lawyer at least checking it will make sure everything is legitimate and your agreement is solid. It should be noted that these are not the only factors that justify your thinking when developing a real estate partnership model, but they are certainly the most weighted. For what it`s worth, your commercial real estate partnership contract should reflect the things that are most important to you.