First flip partnership

[Tyler Bushey]

I may be partnering on a flip with someone, it's my first project and I'm curious about what common partnering terms are.  Thanks in advance!

[Patrick Daniel]

There are a TON of ways to do it:

1. You can do a straight 50/50 split where money and work are equally split down the middle.

2. One person can bring the money and the other manages the project and the money is split 50/50 or 60/40.

3. One person can bring the money and just act as the lender and charge a percentage/points upfront as well as 25% of the profits.

Always make sure your are signing an official agreement (Something like a joint venture agreement) that details EVERY possible outcome.

1. Who will do what?

2. Who pays for what?

3. When will certain things get done?

4. What happens when the house sells or doesnt sell? (Plan for multiple exit strategies)

5. How are the profit and losses at the end handled?

Make sure that the terms are legal for your jurisdiction. (Use a lawyer to review and green the deal paperwork.)