What to put in a first contract with investor.

[Marta M.]

Hello,

I've found an investor for my first flip. I am very inexperienced so am looking for advice.

The investor is a kind family member who really doesn't care that much about a legal contract. However - I do.

I was hoping you could give me some pointers on what is the most important to place in my first business contract. I've found an attorney so he will (hopefully) cover the legal basics. I need help with the "what if's " of the industry.

Basics: the investor will take the loan in his name, put up cash for downpayment and rehab. I do the planning, scheduling, sale etc. Most likely we will split profits 50/50. No interest.

For example - what if we run out of cash and we have to use credit cards to purchase items for the house?? I thought that maybe I should make a mention about that in the contract. Something about split responsibility for credit card debt related to the house rehab…

How about if the investor refuses to put the house up for sale after I rehab it?

Would you please be able to give me a couple of examples of what should be discussed with the investor, what should be placed in the contract, what is a waste of time???

Any help is very appreciated.

I am looking forward to this adventure so I can tell you how it goes :)

Marta