Can I invest other than cash in a partnership?

Re: Can I invest other than cash in a partnership?

Hi guys

1. To begin with, ever trip begins with a single step. This journey is no different. You have to determine to take action however small.
2. Be consistent, not only must you take the first step, but you must stay focused and engaged in reaching your goal. Take some step every day if possible. If you can't do something every day, then take some step once per month.
3. Begin operating on a cash basis. Reduce your expenses, down size your life, and accept less to establish positive cash flow. Complete a shortsale of your home. Negotiate down your credit card principal balances or payment terms in exchange for making the accounts inactive. If your situation is bad enough, you may even consider bankruptcy. In general, work with your credit and creditors to stop debt growth.
4. Become and educated investor. Join an investment c**b or association (The International Residential Real Estate Investors Association is a good one for this purpose). Get to know other successful investors. Don't work with money managers who are salesmen. Work with money managers who have become rich investing their money.
5. Begin buying cash flowing assets. In my case, this is residential real estate. I understand how it works and I understand how to protect my investment. The returns should be conservatively defined and the risk should be limited. Consider this, if you invest $100 and the $100 returns $5 or 5% in cash annually which you carefully reinvest your value will rise much more rapidly than you might imagine. Chances are you can do much better than 5%.
6. Establish your corporate alter ego either as an S Corporation, an LLC, or some other vehicle other than a sole proprietorship or partnership. Give yourself the tax advantages that the wealthy enjoy as you begin creating substantive asset value for yourself.

Thanks

Re: Can I invest other than cash in a partnership?

Hello
What is a partnership agreement or partnership deed?

Forming a partnership agreement is equally important because it reflects the way partners will perform their duties and tasks. Registering partnership means setting out the specific conditions that apply to the partnership. It will spell out the responsibilities of the parties involved and should as a minimum cover the following provisions.

* Amount of equity invested by each partner.
* Type of business.
* How profits and loss will be shared.
* Partners pay and compensation.
* Restrictions of authority and expenditures.
* Length of partnership.
* Dispute settlement clause.
* Settlement in case of death or incapacitation.
* Retirement and Death Arrangements.
* Terms for changes or dissolving the partnership.
* Distributing assets on dissolution.

Is it necessary to develop a partnership agreement?

A partnership agreement is the key to keep business on track although it is not necessary.

It is a common practice that when two or more people work together, they are generally more concerned with their ideas, innovations and creative directions, rather than their legal status. However, it is important to consider and resolve the rights, roles and responsibilities of each member of the partnership in writing before a misunderstanding or dispute arises. Written agreement helps in this regards.

Remember a solid partnership should be founded on good communication.