Columbus, OH · Member since 2018 · 4 posts · 0 votes
I have a friend who has inherited a house from her deceased mother that needs a lot of work. My friend wants to renovate the house to sell but doesn't have the money to do so. My friend has asked me to partner up with her to flip the house since I have experience in flipping. I'm considering to do so but I have not partner with anyone to do my previous flips. So with that being said, I need to know since she owns the property free and clear and by me funding the rehab cost and operating expenses, what should be the profit split? And what type of agreement, documentations, contracts, etc. should my friend and I be signing. I want to make sure my financial contribution in this deal is protected before I agree to go into partnership with my friend to flip this house. Please advise. Thanks
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
8y
I would definitely have an attorney draft up the necessary documents. If you are financing the deal you can get a mortgage on the property so that you get paid back before the property can be sold. As far as the joint venture, you can decide if you want to do a true joint venture, where you get a % of the deal for being an investor, or you can just get interest on your loan. As far as what %, will you be doing anything other than paying the bills, or literally just paying the costs of the flip as they come due?