Advice on Partnership Options

[Jay Chekansky]

Hey BP!

This is my first post but I've been lurking/reading for a while now.  I'm grateful to have a such a great community to work with.

Here is my question(s) - I'm working with a guy who has a contract on a good fix/flip project.  He has the contract, but is not bringing any cash to the table.  Myself and another partner will be bringing money to the table to buy and rehab the home, while he will be investing his time/labor into the rehab. I'm looking for advice on how to best structure the legal side of things - should the money guys simply be hard money lenders to the guy with the home under contract? Should we request to be equity partners? What is the best route to ensure that our money is backed/secured - promissory note and mortgate?

I'm sure there are a lot of details that I'm leaving out.  Hopefully we can get to a solution that works for all parties involved and land a winning deal. I'm looking forward to hearing feedback!