Partnering with a Contractor

[Hai Loc]

I wanted BPs opinion on partnering with a contractor and if there are any nightmare stories 

The contractor I know finds the deal, puts it under contract and he can either wholesale it to me or we can partner. I told him I am looking for a flip. Terms of partnership has not be disclosed yet. 

This is what I propose..

50/50 partnership.. I am an equity partner.. contractors rehab and project management fees are absorbed in the profit.. 

Just wondering if this is fair.. the fact that he is finding the deal kind of doesn't..

At the same time if I pay for a finders fee I should be able to profit more alone but I am not greedy.. and having a partner watching over everything has incentive..

Thoughts are appreciated..

[Don Harris]

@Hai Loc

 Great idea, IF.....

I love partnering with contractors. I've done dozens of them. Just like all other partnerships, Clearly determine what each brings to the table. Have you seen his work? I'd walk through several houses before I committed to work with someone to make sure we see the opportunity in similar fashion.( I just drove 100 miles to spend a half day with a potential partner for just this purpose. I now have no doubt as to his capabilities) Does he have a crew or do they subcontract?  What is his area of "expertise" and what are his shortfalls. Best to know going in.  Think about it, after you've acquired the property the Next person you Need is a contractor, why not team up with them. You may source the property through other means as well.