Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Goals, Business Plans & Entities
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago,

User Stats

195
Posts
86
Votes
Nhi Nguyen
  • Contractor / Flipper
  • Hayward, CA
86
Votes |
195
Posts

Contractor partners up with broker

Nhi Nguyen
  • Contractor / Flipper
  • Hayward, CA
Posted

Hello PBers.  Hope you all have great results on your RE endeavour this first half of the week.  I personally didn't gain anything financially, but got some exciting things to think about.

Besides the multi-division lot I was talking about the last couple of days, I ran into a broker I used to remodel his flips with a couple of years back.

He has lots of deals for sure, and more than 130 agents in his 2 offices spanning the South of the Bay Area here.

He used to get 2-3 bids from a small group of contractors for each flips.  None of those contractors have experience in new construction and commercial.  Now his company plans to add an in house construction arm specializing in his flips, specifically new developments.

So his idea is to partner up with me.  My roles would be to head the construction side, hiring new crew members.  He would be responsible for getting all the deals.  All funding is from his existing group of investors who have been with him for all these years making a lot of $$$!

Roughly speaking, I would manage the crew to either fix or build at cost, with the help of his existing project manager (who would report to me).  I would receive basic pay, plus a percentage of the profit for each project.

Seem to me he also has one more partner, who's been with him all these years.

Questions are:

- How does it sound in general?  Notice that I still have my current crew working my flips/builds for me separately.  They need very minimal supervision, since all the guys been with me from start (8-12 years).  My brother-in-law is helping with running materials from time to time (who is also one of my full time guys).

- How should I get paid (basic)?

- What percentage should the profit be for me?

- How the partnership should be structured?

Tomorrow, I'll be looking at 2 houses, then pick one to try out the model.  After checking the houses, I'll meet with both of them to discuss in details, maybe right around noon time - PST.  So any input is greatly appreciated.  

Thanks in advance.

Loading replies...