flip with 3 people?

[John Jabson]

Flipping a home with an investment from 3 guys, 2 of which have extensive background in construction. All 3 people would be active in the rehab.

Anyone ever done it? It would seem to be helpful, especially when everyone has a 9-5 job to take care of.

[Jon Holdman]

When you say "construction experience", do you mean 20 years as a general contractor? Or, for the last 20 years they're occasionally done projects on their own house? Are any of you licensed in any way? If not, how are permits going to be pulled?

Right now, pre-project, you're all on good speaking terms. I can guarantee that at some point, things will get tense. So, spend time (hours and hours) talking through and writing down how things will work. Who decides how to spend money? Who's responsible for doing what? What happens if more money is needed? How will the money go in (who contributes money), how will the profits be split? What happens if someone dies? How will disagreements be resolved? What, if any, effect does the contribution of labor have? What if one person doesn't actually do any work. What if one of the partners desperately needs money before the project is completed?

Take the point of view that you are all steaming mad with each other about some decision that needs to me made. This document should give you guidance for how to resolve that. What if your two partners want to do something that you are vehemently opposed to doing? The document should cover how that's resolved.