New Investor Partnership

[Joe Mendoza]

Hey everyone!

I am a new RE investor in Oregon. I am looking to purchase and rehab my first deal for about $100k. I only have $20k cash and $20k credit to Home Depot. I do no not have a private lender. I considered hard money as long as I had a partnership.

Well, it is looking like I found a partner who happens to be a general contractor. He said screw the hard money because he has $200k to invest. He is also looking to rehab and is just starting RE investing like me.

Our conversation sounded like we would still share the profit 50/50. My devotion would be marketing, finding leads, making offers, and makeover rehab work. His devotion would be rehab estimates and more than cosmetic rehab work. I would also be learning how to do all that stuff from this guy.

My questions are: do we pool our resources into an escrow account? What are the correct steps to form a partnership on a single transaction. If things work out, we would form a company, but I think for our first deals, we will be representing ourselves.

Any advice or direction is appreciated!

Thanks!