Has anyone done a 50/50 house flip partnership? Advice please!

[Matt Wells]

The plan is for my partner to fund 100% of the home purchase, rehab, and holding costs and we split the profits 50/50. My team will find the deals, rehab, and sell the properties. I plan on repeating this process indefinitely. I assume I will need some type of LLC. Has anyone done this before? Some advice and examples would be appreciated.

[Mark Bosworth]

We are 50/50 in three houses with some young guys and we love it (and looking for more). They do the work and we provide the cash. We stay out of the way as much as possible. We formed an LLC to hold the properties and they are the managing partners with 52% of the ownership to our 48%. Key for us is to have the financials online so that we can always see what is happening. We put the numbers into a free online accounting software (Wave) so that everyone can see them at any time. To make decisions, we have a yearly shareholders meeting over coffee. We don't try and pick out any colors or decide on what type of flooring goes into the property. For bigger decisions, we have a phone call or a text. Our partners have the real estate contacts (contractors, wholesalers, etc) and we want to invest some of our portfolio in real estate. When we do a deal, we try and write down the agreement and have everyone sign it, just so we all remember it. :) I'd highly recommend a partnership.