QUESTION
Average Price for a Joint-Venture agreement form.
Asked on Feb 04th, 2016 on Real Estate - California
More details to this question:
Hi, i wanted to know what is the average price for making a real estate joint venture agreement form? One condition is that i will be the one finding my partner the deals, he buys it, he renovates it and then we sell it and in the end, we split it 30% for me and 70% for him since he is putting all the risk! I am only finding the deals, i am not the one buying and renovating them, that's my partner's job. Second condition is that if anything goes wrong after my partner buys a deal i found him, i am not responsible for anything! He's the one that agreed to buy the house, i only presented him the opportunity. Third condition is that if my partner doesn't agree to buy a deal i found him because of a disagreement with the sellers but then secretly buys it without me knowing privately with the sellers in the future to save my 30% cut, if i find out, it would then automatically become 50/50% once sold! This is an agreement that my partner would have to sign before doing business.
1 ANSWER
A joint venture agreement is traditionally a partnership agreement. A general partnership would leave you exposed to liability for third party claims. What you want is a Limited Liability Company.
Your 30%-70% split of profits, when you are putting up services and your partner is providing all the cash and credit, creates a tax problem. I know how to solve it. We do it all the time. It's just too complicated to explain in the space Lawyers.com provides. It works.
I write up such LLC Operating Agreements and limited partnership agreements often. We prepare the agreement and the one page filing with the Secretary of State for $1500.00 plus the filing fees. That would not include negotiating the deal or any changes with your partner or his lawyer.
Dana
510-286-2200
Answered on Feb 05th, 2016 at 10:48 AM