Flip Partnership Strategy - Good idea?

[Rachel Luoto]

Hi!

I haven't seen anyone do this yet...

I have a friend who wants to be my cash partner. I have some real estate experience but would like some more guidance before tackling a full blown flip, especially with someone else's money.

I figured I would make an equity partnership where my cash investor gets 50% and puts up 100% of the cash, and I bring in an experienced flipper who gets what otherwise would be my 50%, in exchange for mentoring me through the process.

My friend gets the security of a seasoned professional handling his investment. The flipper gets an infite ROI and has a financial stake in making the deal profitable. I get the knowledge and experience to do the next deals myself.

Can you see any pitfalls I don't? Our next REIA meeting is in two weeks and I know flippers will be there!