Partnering on a flip/BRRR property

[Ryan Bosetti]

Hi all. I'm sorry if this question was asked a dozen times before, but I was wondering what kind of documentation/contracts go into making sure one partner on a flip/BRRR property doesn't screw the other over. I've done deals with family members before on buy and hold properties where it is verbally agreed upon that the profit will be split 50/50, but now I have peers recommending partnering with a stranger that knows a specific market and how to flip in that market better than I do. The idea would be to use my own money to finance the entire project and split the profits 50/50 with someone that can do a better job of finding the deal and managing the project better than I do.

If I'm using all my finances for the project, wouldn't the property be in my name? How does my partner know I am not going to sell the completed project and keep the money for myself? What procedures would we follow in order to assure neither of us get taken advantage of?

I'd appreciate any replies as I'm really trying to learn the process. Thanks in advance and I look forward to hearing what you guys have to say.