Joint Venture: Contractors in Atlanta - Let's connect

[Kj Rustom]

I have a few rehab and flip opportunities in Atlanta which have significant upsides if done properly. In order to scale, I would like to partner with contractors for rehabbing. The thought is that I shall focus on deal qualifications and acquisitions. This will include my investment into the purchase process. In the meanwhile the experienced contractor would invest (money+sweat) in post-purchase / build out for the final product. 

The margins shall be split in a win-win manner. This allows each of us to focus on our strengths with a stake in the deal for mutual benefit. If done right, scaling is possible to the extent of our interest and capabilities. Looking forward to hearing from contractors, suggestions or opinions and alternate advice from current investors.  

[J Scott]

My recommendation is not to partner with contractors, unless you've worked with them extensively, and you are skilled/experienced in this business.  What happens if the contractor doesn't do a good job, doesn't work in a timely manner or can't control costs?  If you're paying him as a contractor, you just fire him.  But, if he's a partner, you can't do that, and you could find yourself in a bad situation, where you have little control over your investment and no ability to turn a profit.