Partnering with Broker/Wholesaler

[Brent Hill]

I am just getting started in real estate.  Wanting to get deals on buy and holds but have run across a couple of leads generated off my website that seem to be good for flipping but not that great as rentals.

So on the first one I have partnered up with a friend who is a broker and wholesaler so I could learn on this first flip. We signed a JV to split the profit 50-50. He is negotiating the price, did the walk-through and repair estimates. Is this a good idea, bad idea? Suggestions?

I have another house that I want to flip and I would love to do it on my own and make more $$$ but I think partnering again may be the smartest thing to do.  He knows the contractors, has the lawyer and title company relationships.

Just not sure what do path to go right now...the logical side of my brain says to do another with my friend to continue to learn.  Guess maybe I should get the flipping book I see here on the marketplace because I feel like I need a general overview with a few step-by-step instructions and a list of do's and don'ts.

Oh, I am financing the house and rehab and he is doing all the legwork at this point and when we sell he would get his 3% as the listing broker.

All suggestions, guidance and constructive criticism is welcome :-)

[Jeff Rabinowitz]

@Brent Hill, welcome to BP. This not a 50/50 split. Your friend is getting their commission on the sale (and the purchase?) in addition to their share of the profit so you are getting less than 50% of the profit. (If your friend is a good negotiator he may save you money on the purchase and make you money on the sale.) You are taking all of the financial risk. Does your agreement require your friend to write a check if this project loses money? If this project puts some money in your pocket while you learn the process and meet the contractors that is not such a bad deal. Sure beats paying someone for coaching or mentoring.