Lincoln, NE · Member since 2008 · 249 posts · 46 votes
I am often approached by friends, co-workers and even just acquaintances about going into a partnership to do business together, most than anything else, people want to do a flip. They want quick cash, they imagine easy like the TV shows. But most times, they want to do a flip because they don’t have the capital to get started and I so much want to help them, especially if they are friends who are looking to get out of a hole. But my question is, how do I help them? They have no capital nor credit. They can do labor, which is needed, but how can I structure a partnership like that? Logic tells me don’t. Logic tells me, help by hiring them to do labor, but I wonder…has anyone structure something like this as a partnership before? If so, how? What percentage?
Follow your logic at least until they prove themselves. Then I'd start thinking about giving them a bonus. I'd strongly suggest not giving them any ownership because that is more trouble than it is worth.
Also, I'd buy J Scott's books and give them to them. Then quiz them on what they have learned.
Definitely do not enter any partnership where you're giving control to someone who is uneducated. From what I've experienced and what my mentors have advised me of is that if there is no skin in the game, there is nothing to lose and you don't want to be in business with someone who has nothing to lose. They could learn how to wholesale, especially if you're a buyer and they can just match your criteria.