Partnering with contractors in Maryland

[Aj Bowman]

Hi Everyone, Just wondering if anyone has done this before. I live in the Maryland, Northern Virginia area. For my flips what if I partnered up with a contractor and split the profits 50/50. I would need a contractor anyways for my flips and this way they contractor would have a vested interest in the property. Somethings that I don't know about is, would it be worth it to the contractors? Would this drop my repair cost since the contractor would be getting everything at cost? What do you guys think? Thanks ahead of time, AJ

[Rich Baer]

AJ,

    If you think the Contractor is going to do the rehab for cost of materials alone you have got to be kidding. He will gladly charge you his normal fee and take half of your profits on the resale. Maybe he will agree to wait until the property is sold to be paid. Why are you so eager to give away your profits? Never partner with a Contractor. You can't control costs with a friend let alone a stranger.

Rich Baer, Esq.