Partnering strategies w/ individuals having no financial risk

[Dave Anstatt]

Hi all,  

I' do about three flips a year, have a portfolio of rental properties and have purchased another 2 (soon to be 3) hold properties this year.  I GC all rehab work myself while also doing much of the in house carpentry.  On top of this I manage several properties while trying to lead  a meaningful family life.  Although it's been working out very well financially, I've come to the realization that I can't continue this way  something has got to give and it's becoming apparent what's giving is my sanity.  I've learned here that developing better systems, delegation of work/ responsibilities and building a team is the only way to maintain or increase project flow with the goal of achieving a better quality of life.  I've gained a bit of a reputation locally as a quality rehabber.  With this a number of friends and acquaintances have approached me with interest in partnering or money lending on projects. And recently I'm being fed leads on a number of good properties.  I'm reluctant to take advantage of these opportunities as I fee I just don't have the capacity to handle more than two to three at a time (even that's a stretch at times).   

My team consists of myself and a lead carpenter. He's very skilled and capable of everything from roofing to finish carpentry. I've also got a realtor friend who's fed me deals and gaining inroads with Bank REO's and has out right asked to partner with me on deals. Both of these guys are good at what they do and have expressed interest in "getting involved" in the REI business. Both have little or no money to invest. I'm at a point where I need to build this thing into a more productive, streamlined operation and may have two individuals in my midst to help me do it. The realtor can feed me deals and he's got a genuine interest in learning the ropes and help out in a some of the leg work (scheduling, inspections, oversight, etc.). The carpenter has run his own company and managed many projects. He would be an ideal project manager while still being able to put the tool belt on.

My question is, how can I go about incorporating them into my REI operation to everyone's benefit? They would each like some equity, but I'm taking all the financial risk. I've discussed with some REI's who wouldn't give up anything without a financial input. How have others partnered with such individuals in their own business? Thanks for any insight you may have.