My brother and I are in the infancy stages of real estate investing (research and connecting/networking). And being that he lives in Colorado (Aurora), that’s where we’re looking to start flipping properties. We also have a contact who specializes in siding (let’s call him Joe). Joe has built a network of other subcontractors who he would tap to complete our projects. I guess my question is, does it make sense to bring Joe in as a partner and split the profits 3 ways?
How it would work:
On the first project my brother and I would find the property/lot to rehab/build on. We’d also be the money. Joe would buy materials at cost and tap his network to rehab/build the home for as cheap as we can. So, he’d be playing contractor.
Does that make sense? Or should my brother just hire him to do the job instead (not partner)? What are the pros and cons? Are we missing something?
Thanks in advance BP community!
