How would you JV a deal if you have Construction team.

[Jordan Bigler]

Hey all,

I work with a General Contractor, we’ve knocked out some pretty big house remodels and have a good team of guys. I’ve got my boss (and very good friend) interested in purchasing a property in the area and flipping it for ourselves instead of working for other clients building their homes.  

The biggest challenge is entering in on the finances. California builds cost big money, and while we could do a hard money loan, I'm curious how you all might JV a deal and break down profit percentage wise…..

If we partnered with someone who put up the cash to buy the house, materials, and labor, and we put up the labor and helped move the project through in a timely fashion,


How would you break that payout later?

We have to pay labor costs to our guys and we'd need some costs covered for ourselves, ie… we couldn't work for free on the front end. However, once the house goes to market and is up for sale, what would be a fair percentage to break down for the person who puts up the money in a JV and for the builder who does the labor of the work?

Thanks for your input!