Just in case: WHAT I HAVE SO FAR
PURPOSE:
THIS PLAN HAS BEEN CREATED TO ESTABLISH A STRATEGIC AND TACTICAL APPROACH TO REAL ESTATE INVESTING. THE GOAL OF THE PLAN IS TO DEVELOP A REAL ESTATE MODEL THAT MEETS THE OVERALL VISION OF THE CLIENT.
THIS PLAN TARGETS THE INTERESTS OF THE CLIENT WHO IS GETTING INTO REAL ESTATE FOR THE FIRST TIME OR DIVERSIFYING THEIR REAL ESTATE PORTFOLIO.
THIS PLAN TARGETS THE CLIENTS INTERESTS IN PRODUCING NEW REVENUE STREAMS.
THIS PLAN TARGETS THE CLIENTS INTEREST IN RECEIVING GOOD REAL ESTATE INVESTOR INFORMATION.
THIS PLAN TARGETS THE CLIENTS EXPOSURE TO UNIQUE WAYS OF ACQUIRING REAL ESTATE.
THIS PLAN TARGETS THE CLIENTS INABILITY TO/AND OR LACK OF RESOURCES NEEDED TO MANAGE A REAL ESTATE PORTFOLIO.
THIS PLAN TARGETS THE CLIENTS ABILITY TO UTILIZE THE TAX BENEFITS RELATED TO REAL ESTATE INVESTING.
TERMS
THE CLIENT AND SERVICING AGENT DISCUSSED VARIOUS IDEAS & CONCEPTS TO REAL ESTATE INVESTING. IT IS OUR UNDERSTANDING THAT SEVERAL OPTIONS APPEALED TO BOTH THE CLIENT AND THIS SERVICING AGENCY.
IT WAS DETERMINED THAT THE CLIENT EXPRESSED INTEREST IN INVESTING IN REAL ESTATE USING PERSONAL RESOURCES AND/OR CREDIT LINES ALREADY ESTABLISHED OR THROUGH LENDING SOURCES THAT HAS BEEN UTILIZED IN PAST ENDEAVORS. THERE IS NO DETERMINED MAXIMUM DOLLAR AMOUNT WHICH THE CLIENT WISHES NOT TO SUPERCEDE.
IT WAS ESTABLISHED THAT THE SERVICING AGENT CAN LOCATE AND ASSESS REPAIR AND VALUE OF PROPERTIES FOR POSSIBLE ACQUISITION. THE PARTNERS AGREED THAT THIS RELATIONSHIP WAS NOT THE SOLE SOURCE BY WHICH THEY FUNCTION IN THIS INDUSTRY. THE CLIENT STATED THAT HE HAS INTEREST IN VENTURES OUTSIDE THE SERVICING AGENCY AND THE SERVICING AGENT EXPRESSED INTEREST IN SERVICING OTHER CLIENTELE. PROPERTIES ACQUIRED OUTSIDE OF THE SERVICING AGENCY BY THE CLIENT ARE NOT BOUND BY ANY ORAL OR WRITTEN AGREEMENT WITH THE SERVICING AGENT WHO AGREES TO RELINQUISH ANY AND ALL RIGHTS OR INTERESTS TO PROPERTY TRANSACTIONS THAT OCCUR OUTSIDE OF THE PARTNERSHIP.
THE SERVICING AGENTS RESPONSIBILITY WOULD BE TO LOCATE, PRESENT TO THE CLIENT, REHAB IF NEEDED, AND ACTIVELY MARKET ANY AND ALL PARTNERSHIP TRANSACTIONS. THERE IS NO MINIMUM NUMBER OF PROPERTIES REQUIRED TO BE PRESENTED TO THE CLIENT AND THE SERVICING AGENT MAY PRESENT MORE THAN ONE PROPERTY AT A TIME. THE SERVICING AGENT AND CLIENT AGREE TO MAKE REASONABLE JUDGEMENTS REGARDING WHETHER A PROPERTY WOULD BEST MEET THE GOALS OF THE PARTNERSHIP BY WHOLESALING OR RETAILING, HOWEVER, THE FINAL DECISION IS THE RIGHT OF THE CLIENT.
IT WAS DETERMINED THAT THE CLIENTS RESPONSIBILITY WOULD BE TO FINANCE AND FINALIZE (CLOSE) ON TRANSACTIONS PRESENTED TO IT BY THE SERVICING AGENT ONLY THOSE WHICH THE CLIENT DEEMS ACCEPTABLE AT ITS OWN DISCRETION. THE CLIENT IS NOT BOUND TO VISIT OR REVIEW PRESENTED PROPERTIES NOR RESPOND TO OR MEET WITH THE SERVICING AGENT AT ANY GIVEN TIME. IF THE CLIENT HAS AN INTEREST IN A PRESENTED PROPERTY, THE SERVICING AGENT WILL MAKE THEMSELVES AVAILABLE TO MEET AT THE PROPERTY WITHIN A REASONABLY ACCEPTABLE TIMEFRAME. PROPERTIES SCHEDULED FOR A VISIT BY THE CLIENT WILL NOT BE PRESENTED TO OTHER CLIENTS OF THE SERVICING AGENT UNTIL AFTER THE MEETING AT THE PROPERTY HAS OCCURED. IF AN AGREEMENT IS MADE TO PURSUE ACQUISITION OF A PRESENTED PROPERTY, EITHER WITH OR WITHOUT A VISIT, THE SERVICING AGENT AGREES NOT TO PRESENT THE PROPERTY TO OTHER CLIENTS UNLESS THE CLIENT DECIDES AT HIS DISCRETION TO NO LONGER PURSUE THE ACQUISITION OF THE PROPERTY.
5. UPON COMPLETION OF ALL RESPONSIBILITIES AND THE RESELL OF THE PROPERTY AND AFTER ALL PROCEEDS ARE RECEIVED BY THE CLIENT THE NET PROFITS WOULD BE DISPURSED TO EACH PARTNER ON THE FOLLOWING PERCENTAGE, TIME, AND CRITERION BASIS.
Wholesale/Retail Transactions
The client will receive the entire balance of the proceeds from the sale at closing and will disperse, within 30 days, the Servicing Agent's percentage of net profit from the transaction. Net profit is derived only after all expenses are recovered by the client and are including, but not limited to, the original acquisition cost, carrying costs, closing costs, contractor and construction fees, utilities, insurances, real estate taxes, title fees, attorneys fees, inspection, marketing, real estate commission, professional fees, property taxes, theft, loss or damage, home warranties, surveys, appraisals, allowances, maintenance and cleaning.
Criterion Basis:
The Client reserves the sole right to resell any property acquired through the partnership at any given time and for any given price by any available methods.
The Client is not bound by the partnership to accept any offer to sell the property. Client agrees to review but is not bound by any offer from a written purchase contract.
In the event of a loss of initial capital form the sale of a property, the Servicing Agent will relinquish any and all rights to any portion of the proceeds from the sale.
Percentage and Time Basis:
The Servicing Agent will receive 35% of the net profit if the property is sold and in closing within 30 days of the original date of acquisition.
The Servicing Agent will receive 30% of the net profit if the property is sold and in closing within 31-60 days of the original date of acquisition.
The Servicing Agent will receive 25% of the net profit if the property is sold and in closing within 61-90 days of the original date of acquisition.
Beyond 90 days, the Servicing Agent will relinquish any and all rights to any percentages of the profits in exchange for the sum of $500.00 paid by the Client.
6. IT WAS DISCUSSED THAT THE AFOREMENTIONED ITEMS ESTABLISHED THE PARTNERSHIP AND THAT NO SEPARATE LLC IS NEEDED TO SECURE THE PROCEEDS FROM TRANSACTIONS ARISING THROUGH THIS PARTNERSHIP.
7. THE PARTNERSHIP CAN BE DISOLVED AT ANY TIME BY EITHER MEMBER BY EITHER WRITTEN OR ORAL NOTICE, HOWEVER, ANY PROPERTIES ACQUIRED WHILE THE PARTNERSHIP WAS ACTIVE AND STILL HELD BY THE CLIENT WILL BE BOUND BY THE TERMS OF THIS AGREEMENT.
8. THIS AGREEMENT IS NOT INTENDED TO DEFINE ALL APPLICABLE LAWS AND/OR RIGHTS AND IT IS IN WRITTEN WITH THE INTENTION OF BEING IN THE BEST INTEREST OF BOTH THE CLIENT AND THE SERVICING AGENT. ALL APPLICABLE LAWS RELATED TO THE ACTIVITIES OF THIS PARTNERSHIP ARE UNDERSTOOD TO BE IN FULL EFFECT BY BOTH PARTIES.
