Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago,
Partnering/ Flipping Question
Partnering/ Flipping Question:Believe me, I tried to make this post shorter, I appreciate you reading.First Flip for me.
I'm partnering with 2 others who has more than 10 years of experience with Flipping.
Deal is laid out as below:Partner 1 - Found the property for 10K, ARV is about 120K. Has a crew who can do the flip but not using for this flip.
Partner -2 - Has a Crew and paid 50% (5K) on the property and is named on the deed with Partner1. ( been in partnership with 1 for sometime)
partner -3 -Myself - Has no experience with Flipping and is asked to invest about 45K in rehab costs. In return, I will be managing and releasing my own funds and be a project manager to observe and learn flipping. (I asked to be part of the observation and to closely monitor the process)
Now, I will be putting in a Mechanics lien on the property to get my rehab funds 45k back + I have been offered to take the 25% of the gross profits after the sale which I agreed because I'm gaining knowledge of the whole process and be directly looking into each detail of the project.
What do you think of this agreement? Is this fair? would you suggest anything differently?