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Real Estate Partnership checks and balances…

How do you get people to trust you when they participate in a real estate partnership or group LLC where they have put in their cash and good credit to help you access business credit lines?

You need to create a series of checks and balances to protect everyone’s interests.

1 open a business checking account that requires two signatures to write checks

2 let the credit partner that applies for the business credit card to hold it and use it as needed for the partnership

3 have the credit card bills mailed to the credit partner who’s name is on the account, and then send them the check for the monthly payment. Or fax them a copy of the bill and a copy of the check used to pay it.

4 hire a book keeper to balance the books each month and forward a profit and loss statement to all partners.

5 hire a property management company to collect rent and direct deposit it into company checking account

Mike’s question about paying interest on lines of credit

Do you start to accrue interest the moment you pull cash out of a business line of credit or do you get a grace period?

TOM – If you are using one of the 0% interest cards that I recommend you will pay no interest for the first 9 months. Otherwise – yes, you would pay interest from the time you started using the money.