Flip Partnership w/Contractor & Agent?

[Jeff Nobert]

Just recently I began my investing career and started off with 6 doors. I was able to purchase a 5 unit through a land contract when I only thought I would be able to get a duplex. Then I purchased an SFR in the same month. As of now I'm cash strapped for rental purchases as I'm going to let those brew a bit. So I need more capital.

I have or will have shortly, access to funds that I will only use for a flip situation. Which in turn will create more money for my long term goals of pouring every last cent I have into monthly income properties. As of now, this will be my families and mine retirement long term. But dang this RE living is addictive. My word!

So now I am actively using the same agent (who is seriously awesome!) to find flip opportunities. I have a slew of properties which show potential, that I could pull the plug on right now from him. I’m working with a contractor who is also a long term friend, knows the city and area extremely well and wants to partner on some level. He’s very good at what he does and has scaled his own business very effectively. We plan on splitting the profits most likely based on percentage invested. I will handle financing. He will handle labor and materials. Split will most likely go down that same percentage of financial input into the property. I live out of state. Realtor and Contractor live in the area where properties and work will be completed.

I’m curious as to the BP community’s perspective on this. What to look out for? What to avoid? Suggestions? Cautions? Encouragements? Comments on strategy. The real stuff. Thoughts?