Flipping Houses, partnership ideas?

[Antonio Similia]

Hi Bigger pockets community!

So basically need help understanding whether or not 3 way partnerships can be good and if any of you have experience/advice to share. My father and I just closed on our third multi family last month and have so far had a great partnership with investing (we are close)

Personally I have been reading about flipping and thinking of getting into the flipping scene. One of the hardest things with flipping it seems is having a good contractor to work with but recently we've been working with a young talented contractor who had done some nice work on one of our properties and he has expressed interest in getting into flipping. His problem is that he doesn't have good credit or the cash to get into it alone just the skills and workers in his company. So he mentioned that he would be interested in partnering with me since I have spendable cash.

I'm interested in investing with him as our contractor and partner. With my father as well of course who I believe would definitely want in as he also owns half of our "spendable equity" that we have available.

My questions are, how would we split the profits once the property sells at or around the ARV, what percentages have any of you used or recommend to use with a three-way partnership? Is it worth investing with a contractor who wants to make profit but doesn't have much cash to spend? Still seems like more of a risk on my father and I's part whereas the contractor would only be bringing the work and job organization aspect to the table and not much money.

Idk just figured maybe we could discuss it if anyone has experience in this. Thanks for reading and happy investing!

[Lynnette E.]

Generally I find it easier to just pay a contractor to do the work.  Maybe to get his skin in the game, give a big bonus if it is finished by a certain date and another bonus if it sells by another date at or above some price.

He can not manage money and time.  That is why his credit is bad.  Someone without those skills in charge of construction is not a good partner.