Partnering with Investors and Contractors

[Christopher Gonzalez]

Hello All, I am curious what everyone's experience has been with partnering with other individual on flips/rentals and how it was structured, even more, when those individuals are close friends & family. I am in a unique position where my family is in the business (contracting, agents, mortgages).

Typically I know doing business with family can be very difficult, but I am hoping to be very clear upfront on expectations and partnership- I have found that doing business with family only becomes an issue when you haven't been clear on the onset the joint expectations because those conversations are uncomfortable.

Any suggestions on how to structure/document everything financially? Specifically, there is an opportunity my contractor (direct family member) found that I would love to partner with them on given they would absolutely be doing the remodel and it could help with initial cash outlay. Any unique structures you all have created with a contractor on sharing equity/returns with them- i.e. covering the remodel costs vs. myself covering the purchase? Any lessons learned?

Thanks for the input!