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How To Structure a Partnership Agreement For Athens Real Estate

If you’re a real estate investor, especially a beginning investor, a partnership is probably a good idea. The right partner can provide all the things you lack, whether capital or experience or contacts. You can pool capital and resources and share costs and responsibilities, as well as sharing the risk. But you do need to have a formal partnership agreement in place that clearly outlines the rights and responsibilities of both parties. This agreement will go a long way toward avoiding disputes (and even legal action) somewhere down the road. So here’s how to structure a partnership agreement for Athens real estate.

Responsibilities and Roles

The first task when you structure a partnership agreement forAthens real estate is to hammer out all the details on both parties’ responsibilities and roles. And in order for the partnership to prosper, those roles must be realistic and within each person’s area of experience and expertise. Each partner must have a clearly defined role with clear-cut responsibilities within that role.

Defining roles and responsibilities should take into account each partner’s individual strengths, weaknesses, competencies, and preferences. And when hammering out the roles and responsibilities, you need to consider at least the following areas:

  • Lead development
  • Acquisition
  • Finances
  • Marketing
  • Construction/repair management
  • Property management
  • Sales
  • Business development/growth

Keep in mind, too, that these roles and responsibilities will evolve over time, so you have to structure a partnership agreement for Athens real estate with the elasticity to accommodate such role evolution. Things change, and your partnership agreement should be enough of a “living document” to allow for that.

Money Matters

And, of course, to successfully structure a partnership agreement for Athens real estate, you must be absolutely clear on the financials, which is typically the most important aspect of any partnership agreement. A clear understanding of the foundational money matters is the surest way forward toward a successful partnership.

The questions you will need to ask and answer in this part of the partnership agreement structuring include:

  • How much capital will each partner contribute?
  • How will profits be split?
  • What are the desired returns on investments?
  • Will you pay yourselves a salary?
  • What will be the level of risk tolerance/aversion?
  • How will financial decisions be made?
  • What are the investment philosophy and business model?
  • Do your retirement goals and exit strategies align?

Time Commitment

The amount of time each of you plans to stay in the real estate business, as well as how much time each can devote to the business, will also play a big part in how you structure a partnership agreement for Athens real estate. Most often, real estate investment businesses begin as part-time ventures. It’s imperative, then, that you and your partner be comfortable with the amount of time each is willing and able to devote to the business till it takes off and becomes a full-time affair.

In addition, you need to be clear about long-term commitment. For example, do you both plan to stay in the business for a decade or more? Or does one of you want to commit to only a couple of years? Clarity in this area at the outset can help you avoid bitter disagreements (on even lawsuits) later on.

Protection of Assets

Although entering into a partnership can be a great move for a real estate investor, there is always a risk, no matter how trustworthy and financially solid your partner seems to be. So you must structure a partnership agreement for Athens real estate in a way that protects your assets. Even if the risk is obviously slight, you still need to protect yourself.

You also have to protect yourself and your assets from malicious lawsuits. (Tenants are known for suing at the drop of a hat.) This kind of protection will determine in large part the kind of business entity you form. So be sure to consider the overall business trajectory, liability protection, tax treatment, and the ease of formation.

Consider a Local Agent

While your real estate agent is not a business consultant, she can, nevertheless, be a wealth of information on the real estate side of your business. It’s probably a good idea, then, to consult your qualified local agent when you’re ready to structure a partnership agreement for Athens real estate. And we’re ready to help when you are ready.

Discover how our agents can assist you to structure a partnership agreement for real estate in Athens! Contact us today! 706-426-1082

Georgui Kassaev

Georgui Kassaev was invited to this country in 1996 during the Atlanta Olympic games. The first place he came to call his home after leaving Russia and performing all over Mexico, was Athens. He became a professional mixed martial arts fighter, then coach, and eventually obtained two black belts in taekwondo and Brazilian jiu-jitsu. He formed a specialty carpentry and construction business which sparked his passion for real estate. He then rediscovered his first passion performing. After all, he has performed in the circus since he was eleven years old in front of thousands of people and then again when he was an adult as a professional fighter. In 2018 he landed his first 3 television roles. While acting, he continued developing his real estate skills, becoming a value-add investor in the Classic City and then getting his real estate license. He has now become a listing specialist in the Greater Athens Area, working with homeowners to protect their interests and get them the right price for their property! However, he never abandoned his construction roots and works with investor clients to help them buy properties based on their numbers with no aversion to making multiple offers. Georgui is fluent in three languages Russian, Spanish, and English. He is proficient in video production and social media marketing.

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