@Garrett Wilson
I have done probably 15 JV flips.
Structured differently each time.
I can say this it depends where you are in your knowledge and where he is in his knowledge.
How good are you at finding deals?
Evaluating the ARV ?
How are you funding the deal ? Cash, hml, construction loan
Will you be hands on ? Picky ? Indecisive? A homeowner ? Wanted to go above and beyond because you think it’s the “right thing to do”
is he a GC? or apart of the team doing the work.
He can bring coats down without charging
He can perform the work at cost instead of profiting and performing the work.
Thus using his knowledge and expertise and connections bringing the costs down
He’s more inclined to get the job done
All of my splits have been 50/50
I have always bought the deal defined the sow and performed the work.
Why I stopped JVing
Had enough to where I could flip 2-3 homes myself
No longer made sense because being contracted to do the work I make 20% which is typically is 20k for example
that same flip profited 40k split 20l but didn’t see a dollar till sale. Made same amount of money but got paid months later ?
So a lot goes into considering a GC as a partner on the split.
