Hello all. I am a small contractor who wants to begin flipping houses in my area with my brother and another contractor. As this is my first venture, (and theirs) I want to make sure the agreement we make is fair before considering any properties.
Here's the situation: My brother, who works with me, will get a mortgage for the property, make the house payments, and live at the property while we rehab it. I will fund the labor and materials costs in addition to weekly paychecks for the three of us while the work is being done. The third man is an experienced contractor whom I have worked with for many years and I trust him completely. He will oversee the day to day operations, material acquisition, inspections, etc. But he will not contribute any money. His experience, which is far more vast than mine, is definitely something I value, and I feel it is needed.
We all work together doing remodeling, painting, decks, etc. so we trust and rely on each other as family. So my question is, how do we split the profits evenly according to each of the three partners?
Thanks for any thoughts, advice or suggestions. Lee
