Partnering on a flip

[Andrew Brady]

How would you structure a partnership, where one partner is putting up the money, and time, and the other is just basically acting as a co-signer?

I was all set to close on my first deal, and the issue of debt to income disqualified me. On paper, there’s an issue (part of my salary is commission and bonuses) but in reality I have plenty of cash to pay two mortgages.

My question is what would you offer someone to co-sign, and be on the loan for 3-6 months while the rehab took place? Would you offer them a percentage take of the profits? A flat fee? How would you structure the contract?

I plan on having a lawyer draw up the paperwork, but wanted to get some input on what to put in it.

Thanks Bp!