Advice needed on partnering on a flip

[Zaid Tillma]

I have one person that are interested in partnering with me to flip one specific property. If this happens, this would be my first flip.

I would be doing most of the work (getting bids, working with GC, staging etc), and want to propose a 60/40 split for a 50/50 capital investment. Do you think this is a fair deal with my partner, and is this done normally?

I would appreciate any pointers on some sample contracts that I could study to enter into with my partner. If you have any lawyers that could draw up an agreement in Atlanta, I'd be grateful for a recommendation.

I am curious - who would hold the deed? Perhaps an LLC needs to be created which will own the deed to the house, and the operating agreement would dictate how profits are shared (if any :) ).

I am newbie, and I am learning - it is possible that some of these are stupid questions.

[Will Barnard]

May I assume you get 60%, partner gets 40%, partner only supplies 50% of funds, you do same plus all the work?

If that is what you mean, sounds like an unfair split on your end to me unless partner finds the deal.

If you do a JV, you can do one of several things . .
1. Form new entity with you both as owners and with an operating agreement drafted by your RE attorney protecting both parties and spelling out who does what, when, why, how, where, what if, etc.
2. Have your attorney draft a JV agreement between your entity and your partner's where both entities are on title.
3. Draft a promissory note where your partner is in lender status and has a shared appreciation mortgage where he/she gets a profit split (and perhaps, if you both choose, a preferred interest rate as well)