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Updated about 7 years ago on . Most recent reply
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Partnering with a contractor
Hi everyone,
I've been thinking of partnering with a contractor that's done good work for me in the past. I might use him for some flips and maybe some buy and hold. I would be finding the properties and providing the funding, he wouldn't be bringing any money, he basically would be doing some of the work (I would expect to be working on the project 100% of his work time, no working on side work) and acting as the general contractor (he's about to become a general contractor), I have 0 experience doing this, for you guys that are doing this type of partnering, how do you structure this type of partnership?
Thank you!
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If you're looking and funding the whole deal + rehab, I don't see any reason why you want to partner with your contractor.
If he's the GC, he or you will still need to pay the subs. He probably has other clients, and you can't expect him to drop his other work to focus on yours.
Plus you need your partners to have skin in the game.
I would suggest hiring him as a GC first for a few properties, see how it goes before you decide to go into a partnership.