Need partnership advice on a flip

[Andres Manco]

My wife and I are going to partner 50/50 with our friend in our first Fix and Flip deal.

We are financing the loan, so down payment and closing cost will come from our end.

Our friend is a contractor and is taking care of the rehab, work, materials, etc.

Need advice on how to deal with our partnership. Legal and tax wise
 

Our friend has his own LLC but we don't have any.

I will appreciate any advice even if it’s not on time for this deal. It might help for next deals or partnerships to come.

[Eliott Elias]

Get with a lawyer on this, you have a lot more to lose than the contractor. I would have the contractor put up some money and both of you pay for contractor services accordingly. It get's really grey when the contractor starts doing work that is not up to your standard and there is a difference in opinion