Interesting oppurtunity

[Brandon Purdeu]

Good afternoon BP,

Looking for some opinions. I am in the process of my first flip which I purchased off the MLS. Not a great flip by many flipper standards but I should profit $12,000-$15,000 plus the education from the process. Through the closing process I kept hitting the pavement with my relator trying to line up another deal in case this one falls through or I stumble across another MLS miracle.

In that interim I slowly came to the realization that the MLS isn't the best place to find flips and started to put together a mailing list. I have about 850 names to mail to and drove by about 100 of them to check the lists accuracy and property conditions. I was explaining the process to my relator and it peaked his interest. Suddenly he was interested in joining me in the venture.

I love my relator, he's an investors relator and has much better connections in the area I invest in as he's been in the community for over 20 years. He's been in real estate for about 3 years and has worked primarily with investors. We both have our strengths that we bring to the table, I'm creative and understand the construction side and he has the resale and market knowledge and can match the capital I have in my business. We have a very strong professional relationship.

Questions:

1. Are there any issues with a licensed relator being involved in wholesale deals? If so does it need to be disclosed?

2. Should I cut him in 50/50 or just go deal by deal?

3. Those that have started partnerships how did they progress over time?

4. Any other words of wisdom from BP would be appreciated!