Investment Partnership Agreement

1. Purpose

This Investment Partnership Agreement defines the collaboration between the Company and the Investor for participation in fix-and-flip real estate projects.
The Investor provides capital funding for property acquisition and renovation, while the Company manages all project aspects — including due diligence, construction management, and property resale.

2. Investment Amount

  1. The minimum investment per project is USD 25,000.

  2. The Investor may contribute higher amounts based on project size and capital requirements.

  3. Funds must be transferred to the Company’s designated account before project commencement, in accordance with the agreed payment schedule (see Appendix A).

3. Profit Distribution

Upon successful completion and sale of the property, net profits (after all expenses, taxes, and selling fees) shall be distributed as follows:

  • 70% to the Investor

  • 30% to the Company

If the property cannot be sold or the project is terminated early, fund return and loss allocation will follow the provisions in Section 9 (Termination & Fund Return).

4. Duration

Each contract corresponds to a single project, typically lasting between 6 to 12 months, depending on project complexity and market conditions.
The Company shall promptly notify the Investor of any significant changes to the expected timeline.

5. Rights and Responsibilities

5.1 Company Responsibilities

  • Conduct all due diligence prior to acquisition.

  • Manage property purchase, renovation, and resale processes.

  • Hire, oversee, and coordinate contractors and suppliers.

  • Provide project updates, expense reports, and final accounting upon completion.

  • Ensure transparency and adherence to professional standards.

5.2 Investor Rights

  • Receive periodic progress and financial reports.

  • Obtain access to project records upon reasonable request.

  • Receive the agreed profit share upon successful sale and settlement.

6. Reporting and Transparency

  1. The Company shall issue monthly progress reports detailing renovations, expenditures, and key milestones.

  2. Any material delays, cost increases, or challenges must be promptly communicated to the Investor.

  3. Upon sale, the Company shall provide a final financial summary showing total revenue, expenses, and net profit distribution.

7. Management Fees and Expenses

  1. A separate project management fee (if applicable) may be charged as specified in Appendix B.

  2. All project-related costs — including acquisition fees, permits, utilities, insurance, maintenance, and selling commissions — shall be paid from project funds prior to calculating net profit.

8. Risks

Real estate investments inherently involve risks, including market fluctuations, renovation delays, cost overruns, and other unforeseen factors.
The Company follows a proven model to minimize risks but does not guarantee specific returns or full capital protection.

9. Termination and Fund Return

  1. This Agreement may be terminated by mutual consent or for material breach by either party.

  2. Upon termination before project completion, the Company shall return any remaining funds after deducting verified expenses incurred up to the date of termination.

  3. The fund return process and timeline shall be outlined in Appendix C.

10. Confidentiality

Both parties agree to maintain confidentiality regarding financial data, business strategies, and project details.
Disclosure is permitted only when required by law or regulatory authorities.

11. Representations and Warranties

Each party warrants that:

  • It has full legal capacity to enter into this Agreement.

  • Execution of this Agreement does not violate any other binding contract or law.
    The Company agrees to perform all obligations with professional care and good faith but does not guarantee market outcomes.

12. Indemnification

Each party agrees to indemnify and hold the other harmless from any losses, damages, or claims resulting from breach of obligations or gross negligence under this Agreement.

13. Dispute Resolution

  1. Any disputes shall first be addressed through amicable negotiation.

  2. If unresolved, disputes shall be settled by binding arbitration in Springfield, Illinois, USA, under Illinois law.

  3. If necessary, either party may bring the case before the courts of competent jurisdiction in that state.

14. Governing Law

This Agreement shall be governed and interpreted under the laws of the State of Illinois, USA, unless otherwise agreed in writing.

15. Miscellaneous

  • Severability: If any clause is held invalid, the remainder of the Agreement remains enforceable.

  • Amendments: Any changes must be in writing and signed by both parties.

  • Assignment: The Investor may not transfer rights or obligations without the Company’s written consent.

Appendices (Demo Placeholders)

  • Appendix A – Payment Schedule

  • Appendix B – Project Management Fee (if applicable)

  • Appendix C – Fund Return Policy