Advice Wanted - Partnering Basics

[Geni P.]

I have an off-market deal in Lakewood, CA that will be under contract shortly. I am looking to rehab and resell the deal myself, however after listening to the BP Podcasts I have decided to take the advice given quite often and look for someone experienced to partner with rather than seek out a hard money loan and work through the process by myself.

My question is this, during a partnership how would the novice rehabber, who is bringing in a deal, account for the cost of money that an experienced rehabber would be bringing in to fund the deal?

[Josh Autery]

While doing a deal with you may bring profit to the more experienced partner, your involvement will probably be more of a hindrance to an experienced investor.

If he is providing cash, time, and knowledge (while bearing the risk of a new investor), I would think you'll have to give up near 50% of the profit.

But as @Gregory Harris points out... it will vary partner to partner.

Ask yourself this: If YOU were an experienced investor, who can obviously find his own deals... how would you value what your bringing to the table if you were in their shoes?