82: Rookie Reply: How To Split Finances in a Partnership/Joint Venture

This week’s question comes from Jimmy on the Real Estate Rookie Facebook Group. Jimmy is asking a couple of great questions about those in partnerships going in on a property: 1. How do we split the cost of buying a property 50/50 and keep the funds in one place?  2. How would it work right now as 50% of the money is with him and 50% of the money is with me?  Many real estate investors will come across the same question that Jimmy has, especially since partnerships and joint ventures are common as you grow your portfolio. Both Ashley and Tony have partnerships and answers to these questions! Here are some suggestions: Lay out how the responsibilities, costs, and profits will be split Use an attorney to draft up an operating agreement or joint venture agreement  Set up a new joint bank account for each property you acquire Make sure your assets are liquid before committing funds to a partnership Follow “seasoning” regulations for any money put into the joint account And more in the episode… If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). Check the full show notes here: https://www.biggerpockets.com/rookie82 Learn more about your ad choices. Visit megaphone.fm/adchoices