Partner w/ contractor?

[Greg Gerken]

My contractor has the money and wants to partner with me.... he wants me to find the deals, negotiate the deals, design the flips, negotiate material costs, sell and market the house. He’ll fund the deal and do the work.

How do you structure this?

Should he charge for labor?

What should be the splits?

Should he just lend me the money take interest and labor and a small percentage after sale?

Thanks

[Tchaka Owen]

@Greg Gerken - there's no one way to do it, most important thing is that it's fair to both sides. When I was a newbie, the guys with money would provide funds while the newbie handles the rest. Split was 50/50. As I got older, I found that the more experienced in that scenario might do 55/45 or 60/40 with a small bit of interest. So what's fair with your deal? You could take either of the above and substitute him in for rehab. So he'll get paid several ways. That's probably best because you don't know what the level of rehab yet. That said, he also needs to rehab at the right price, no jacking up costs.