House Flipping Business Models

[Anthony Simmons]

Hi All,

I am curious as to what type of business models experienced house flipping teams have used to set the foundation for their house flipping business with other co-owners.

Myself and two of my friends are interested in starting a house flipping operation together. Essentially, two of us would be the primary investors (at least in the beginning) while the third member would be the project manager/primary contractor for the remodels. We are still early in the process as we work through all the details. A topic we had today revolved around how to set up the business itself, specifically around the make up of the 3 parties involved. For starters, with two investors and one project manager, what is the best way to set up compensation? Does the project manager get hourly rates? What about money accounts - is it prudent to set up a joint business/personal banking account? etc. I would love to hear everyone's opinion on this broad topic; whats worked and what hasnt?

I am also open to any and all advice you experienced folks would love to share while we're on the topic!

Thanks in advance,

Anthony