Partnering with Cousins on Flips

[Brandon Davis]

My two cousins own a successful cabinetry/remodeling business. They are trust worthy and do an incredible job

They want to get into business with me flipping homes.

 I'm ready to pull the trigger, and have money for down payments, however:

How would I structure a deal with them? 

I guess I would get the loan on the property, and they would receive the money set aside for the GC on the rehab plus a 50/50 split when the property sells? Does this sound about right? Would two men be able to do more than a couple flips a year? 

Thanks.

[Lukas Vanagaitis]

@Brandon Davis, even though you are partnering up with family members you can trust, I'd recommend treating business as a business, have contracts and written agreements with each other. You can structure your LLC at 50/50 split, but have responsibilities clearly defined in writing, with consequences, what happens if that person doesn't perform his part. When it comes to the capital, you can definitely look at HML and private money as a 2nd position for a gap funding. You'll need your capital for EMD's, appraisers, closings, etc.