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What is the best document to use if I want a percentage of someone else business.

Los Angeles, CA |

I am a Real Estate Investor and I do not have a Real Estate License. I've been buying and selling Real Estate for 15 years as a PRINCIPAL. Now my college friend wants to get in the business and ask me to show him how this is done. Since I am a Business Person, I agreed to show him for a percentage of every deal he does. What is the best Agreement, i.e. Master Fee Agreement, Joint Venture Agreement, etc. to use to legally arrange this deal without breaking any laws pertaining to obtaining a Real Estate License. I don't want one. There must be a business arrangement that can be made. Can I be a "Business Consultant" to him without a Real Estate License?

Attorney Answers 5

  1. Best answer

    I agree with my colleagues that you need to have an experienced real estate attorney in CA to assist you with the proper agreement. The enclosed article should give you some perspective as to what CA allows and does not allow in the licensed/unlicensed real estate activity umbrella.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained.

  2. Does your friend have a real estate license?

  3. If you are talking about a lot of money, which one would surmise you are, just hire an attorney to do this for you. Asking here what is best is not the best way to go about this at all : )

  4. You want to hire a business/real estate attorney to prepare this agreement. There are too many details for any general answer on the site.

    Please note that I am answering this question as a service through Avvo but not as your attorney and no attorney-client relationship is established by this posting. An attorney-client relationship can only be established through signing a Fee Agreement and paying the necessary advanced fees.

  5. You do this business for 15 years and you are successful .Now you want your friend to come in.
    First how well you know your friend? Many Fraud cases with friends and real estate investors due to the changes in the market . Most of the times real estate includes big amounts of money.
    Check very well the past of your friend prior of doing any business with him.
    After that you really need a savvy lawyer to guide you. Maybe you are a great businessman but you need the right lawyer to help you.

    Disclaimer:Attorney and Fraud Examiner.One of few that are Certified Fraud Examiners (CFE). The information contained in this website is provided for informational purposes only, and should not be construed as a legal advice on any subject. No recipients of content from this site,clients or otherwise,should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. The content of this website contains general information and may not reflect current legal developments, verdicts or settlements. The Karamanlis Powers Law Offices expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this website, weblogs, twitter, facebook, google+.

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