All Forum Posts by: Paul Bodnar

Thanks for the words Charles. Your description of the process is precisely why I want to do it and always have. Working hard for myself and under pressure is something I thrive in. 

My partnership, mentioned in the beginning, is a way to get started and have help with the responsibilities getting things moving while maintaining a full time job. It doesn't mean every deal will need a partner or that I plan to lock myself into it for the extended future. 

That was the point of my original post. How do I form a partnership for a handful of deals to get things started but still leave myself open for other potential opportunities. Am I over thinking it?

Again, thanks for the words.

@Account Closed - I currently am still working a full time job. My partner brings easier access to private money, the direct access to skilled cheap labor (that I trust) and I know will 'hustle' just as much as I do to quickly turn around any property we purchase together in 30-60 days. My immediate goal is not to maximize every penny I can, it is to develop systems that I can scale relatively quickly and having a partner will help maximize accountability while maintaining flexibility. Cutting out the O&P of the contractor markup on the project, will help minimize the hit of splitting profits as well.

By developing a partnership, I plan to have verbiage in the agreement, opening me up to pursure additional opportunities as well.  

I am in the beginning stages of investing in RE in the Baltimore market via fix and flips. I am planning on getting started with a partner who I have a working relationship with and trust. That said, I still want to protect my interests in the future. We are currently in the process of setting up a LLC with the intention of splitting profits 50/50. We are securing financing, viewing properties, and plan on pulling the trigger soon. I plan to have an agreement written up by an attorney to protect both sides, and would like some input on what to suggest/look for to be included in the agreement. A few more details..

1. - We both have a background in construction and is the aspect of the flip I feel most comfortable with. We will have no mark up on construction as we will manage labor/subs/material directly.
2. - We have established roles for starting out. This could obviously change over time but for the first few we are set.
3. - Neither of us will be paid for the process, instead taking money only on the back end (if at all), while rolling most of the money into additional flips.

I would like to hear input from others who have had similar arrangements with partners and the pros and cons they have encountered when doing so. I would like to protect my interest in this partnership while also keeping options open for other avenues both legally and financially.

@James Wise - Raised in Akron/Canton and went to school @ Kent. Thanks for the welcome.

@Russell Brazil- Thanks Russell, I plan on checking out the BWI REI meet up next month to see what it is all about.

@Matt Motil- the money thrown around in commercial construction can be eye opening. I am a PM for a smaller healthcare GC and issue PO's upwards of $100K on a daily basis like it is nothing. 

I do believe being in construction has taught me several valuable things that can be applied in my own ventures. Most importantly, maintaining subcontractor relationships and developing and sticking to a critical path schedule. Both of which help for projects to stay under budget and maximize profit. 

@Matt Motil- haha didn't mean for that to sound corny. I will take you up on the beer. Every time I come back home there is a new restaurant/bar I want to check out. 

Running commercial projects has already helped me understand the game. Problem being, I am on the wrong side of the game. 

@Account Closed- I never understood what real traffic was until I moved to the DMV area. Took some major adjustments over the years, but you just have to learn to accept it. Podcasts have always helped me stay sane, and the BP podcasts have been a much needed addition. 

I wish you luck in your new ventures. Are you targeting the Frederick area as your location suggests or are you looking down south on 270 towards DC or east on 70 to Bmore? 

@Matt Motil- reading quickly through your background, you have taken the same path I envision with myself. Definitely someone to follow and look up to.

@Kathleen Bassett - I would love to pick your brain at some point regarding your input on certain Cleveland neighborhoods. 

@Jonna Weber - thanks for the kind words

@Sam Valme - NOVA definitely makes you my neighbor. I spend my fair share of time sitting in Virginia traffic listening to BP podcasts haha.