JV structure, 1st time

[Brian Alterman]

Hi everyone,

I'm embarking on my first investment and want to JV with a local person on a flip. They have more experience than I and have a team in place. I'm looking to learn the ropes from them as well as share in some of the profits. I just presented them with a property that we are going to discuss and put an offer on. I was wondering how to structure the JV part of the deal on my end.

Deal:

I found it (and want to collect the 3% commission on the buy side... I am licensed, they are not).

Asking price $124.9k (could be a price war as I think it's going to be competitive)

Rehab: $30k

ARV: $250k

I'd like to put up all the rehab money and help were I can (I still have a full time job) so I can learn the ropes of how to do a flip.  They have the Private Lender to use for the deal, as well, as the vendors and experience and overall would be managing the project.

My benefits are I can save them/us 3% commission on the sales side by listing it for us.

What would be a good/fair split on this? 50/50 was my thoughts. And also what terms/conditions do we need to be thinking of... the what ifs? And what should I be looking for in the contract details (JV that is)? Lastly, what do I need to be asking to lookout for myself in this JV? How will title be held (I already know it will be in a Land Trust), but who signs what, am I listed on mortgage/insurance/etc. Looking for some directions on the details to ensure I'm taken care of and not skipping over on anything.

Thanks!