Structuring Partnership w/Realtor for flip

[Mike Cartmell]

I would like to partner with an experienced investor to flip a property. I have connected with a Realtor/Investor who is willing to partner with me for my first flip. He has flipped many homes in the past by partnering with out of state silent partners.

We intend to split the profits 50/50. I will purchase the property and fund the rehab and he will manage the entire project and split his commissions as part of the deal. Do you feel that this is a good way to split profits? I will be more or less a silent partner but would like to learn as much as possible during the process.

I will be meeting with him in a week to discuss details of the joint venture. What questions should I be asking during our meeting?

Thanks,
Mike

[Luis A.]

Maybe it's just me but if you are puttin all the money I don't see why the profits should be split 50/50. Remember the "other" golden rule..."he who has the gold rules".

If you are putting in all the money you are assuming the largest risk of the whole thing. It's your money on the line while for him is only an investment of time. Plus he is also making money through the commission.

If he was in Georgia he would have to disclose he has a financial interest in the transaction.