Distance Equity partner

[Account Closed]

I am possibly moving to a new location within the next month, but I absolutely love the market I'm in now. I've made many contacts, including contractors I can trust that also have the same mindset as me. The location I would be moving to is about 8 hours away. Has anybody ever been a distance equity partner? As in I would finance all deals with my contractor partner doing his thing, then split profits 50/50?

[Andrew Cordle]

@Account Closed

Hey we do a lot of those in CHI and ATL. We have probably close to 8 going on right now. I am a little more like @James Wise  meaning we are the ones finding the deal then overseeing everything. 

We have structured it a couple different ways...

1. My Favorite--- we find the house then someone like you purchases it and owns it on title we are not on title. Then we order all the materials from HD and hire and over see all the contractors. We receive the invoice sign off on it once it is complete and then send it to you for payment directly to the contractor. We list it and sell it then at closing you sign off on the HUD etc and all money goes directly to you and you pay us our split.

2. A lot of the same but we close in our name with you funding and taking a first lien. Half of construction is funded up front then half way through (with pics or video) of what is done you send the other half. We list it and close and then we pay you your split after closing. Of course you lien is paid off at closing as well. 

All that to say, IMO I would be nervous to partner with a contractor hopefully there is another type of relationship there as well. If he is your contractor he is sordof double dipping and you have no way to really verify or double check anything. It can still work but you would have to put some good checks and balances there with a contractor as a JV partner.

Andrew