All Forum Posts by: Kate R.

Well, it is an old thread...I went on to flip three houses with the partner I mentioned.  We made a profit on all three, but not a huge profit given the amount of money I had to put into it.  I do think now that i have some under my belt, my best bet would be to just hire contractors myself in the future, but right now I am taking a hiatus.

I'm new to this and feel that with his connections he will be able to really keep costs down. If I hire all the contractors myself, I think I will pay a premium.  I fell like we both will do better being part of a team than each being out for him/herself.  

Also, while he won't actually have money in the project, he will carry some of the risk by investing his time without pay until the project is complete (and profitable).

I'm just interested in what split others have worked out.  I'm having a lawyer draft a letter of agreement between us and still trying to work out exact terms that are fair to us both.  

So I am a landscape designer and have a very good working relationship with a contractor who builds most of my projects.  He is looking for more construction work in the winter and I am looking to invest in a house flip project.  I have searched these forums but can't find many clear discussions of the terms that would be fair for us to partner on a house deal.

As we have it, I have formed my own LLC and would buy the property and put in all the money for the renovation and carrying costs. He would provide his time and considerable contacts in the area among builders/plumbers etc. He would GC the project, and I would help on design, fixtures, and management/administrative items.

Another forum post suggested the investor care 6% interest on the money and then split the profit 50/50.  Is this fair?  

Houses in our area are very expensive, with fixer-uppers in the $300-$500 range and looking to spend another $100k or so renovating.  I feel it is a lot of financial risk and what to be covered for that, but also want to be very fair to a respected a trusted partner.

What do others do?