All Forum Posts by: Brad B.

@John Horner , thanks for your thoughts. I think eventually our friend would need to manage contractors in order to handle multiple rehabs at a time. He would have an incentive to do that since he is paid based on profit.

@Jonathan Harris , I see what you are saying about offering less equity. However, even if we found a good contractor, we'd still need someone to be checking on them and driving the schedule, right? My brother and I can't do that since we have full time jobs.

Our friend has the flexibility to work part time at his current job if he needed to manage a contractor for us. So he would be able to make ends meet even if we only had 1 rehab going.

One of our motivations to make him a part owner rather then an employee is to avoide all the payroll and labor burden costs and headaches. However, we might be complicating it to much.

I know there are lots of discussions on this topic but I haven't found one that completely fits our situation.

My brother and I are looking into forming an LLC to fix and flip with the plan to buy and hold once we build more capital. We both have full time jobs. We are planning to work together to find deals, analyze deals, raise capital, network, etc. However, we don't have the time to be managing rehabs.

We have a close friend who has no interest in finding/analyzing/networking, however, he is really good at performing actual rehab work. My thought is that my brother and I would handle all expenses, loans, find/analyze deals, while our friend would handle the rehab, including hiring and managing contractors if he isn't able to do the work himself. We would split profits 33%/33%/33%, however our friend would not be paid for his time. Our friend has no monetary risk and his investment is his time. My brother and I would have risk but we don't have to do much day to day management and we can keep our full time jobs.

Please give me your thoughts. We want to make this fair to everyone involved but not try to force something that won't work by splitting profits too much.

Thanks @Jeff Greenberg .

Advice.

(The post cut off my last word again! Maybe it's my smartphone.)

I'm not sure why the post cut off, I meant to type: Thanks for all the great

@J. Martin Thanks for all the great

Thanks @Dmitriy Fomichenko .

Gene Hacker that is interesting to hear about the kern river valley market. That's great you are cash flowing. JO and cannell trail are great rides. I've heard good things about the others also although I haven't ridden them yet.

@Gene Hacker I like that area, we go up there occasionally to mountain bike, etc. Do you have vacation rentals or regular SFR`s?

Why not at least continue to network locally, listen to all the bp podcasts, consume the site, and see how much more confident you feel in a few months about your ability to analyze deals in your market? I joined bigger pockets about the same time you did knowing nothing and since then I have powered through the podcasts and now feel like I can at least speak somewhat intelligently about real estate. The main thing I feel is that I can learn everything I need without paying someone to teach me, especially at those rates. This smells like a group preying on new investors who don't yet know thier own ability to learn this stuff.