Investing in commercial real estate can be a fun, challenging and rewarding endeavor when you go at it on your own. However, going it alone is often difficult and unrealistic for many investors. This is why most investors find partners - to increase their ability to take on new projects while also minimizing exposure to risk. However, partnerships can be a lot like marriages. In the beginning it's new and exciting, and nothing could possibly go wrong - until it does. Unfortunately, just like marriages, many times things do go wrong when two partners team up and invest in a project together. Which is where the Partnership Agreement comes into play, the agreement that lays out all the terms your partnership will operate upon. Two of the most important terms your partnership agreement must contain are (1) the specific roles and responsibilities of each of the partners involved; and (2) how and when each partner will be paid. This is overly simplistic, and your agreement will contain many important terms, but at the end of the day those are the two key issues that dictate the partnership and keep it going.
Each partnership agreement is completely different based on the relationship between the partners, goals of the partnership and type of project. In drafting your partnership agreement we will take into consideration all of the unique characteristics of your partnership, while also sticking to the bedrock concepts of a strong partnership agreement to make things clear on all sides and protect all parties from unnecessary liability.
Give us a call if you are entering a new partnership and need an experienced attorney to put together your governing instruments.