All Forum Posts by: Ryan Bosetti

Hey @Chris Jensen,

Would you be able to speak to the specifics of your operating agreement? What kind of practices do you and partner put forth to assure there's no meddling? You spoke about retaining control and activeness, can you delve more into that? Also, would you recommend partnering with a contractor to a beginner or do you think the process is easy enough to where an individual can just hire a contractor and go at the project solo? Looking to see what you think the upsides of your partnership is as opposed to you doing things by yourself. Appreciate the reply. 

Thanks @Jim Goebel, Thanks @Alina Trigub,

It's comforting to know that it's not just my deep seated trust issues. When I hear some of these guys talk about partnering with someone they met online it comes off as insane to me. I suppose you're both right, that if you can be heavily involved in the process than it really mitigates the risk. I guess this leaves partnering with people out of state off the table if you can't really monitor everything your partner and the contractor do. Even with an operating agreement in place it seems like it would be extremely difficult to prove theft of service/inflation of prices. Thank you both for your comments, they were very informative. 

You seem to only hear about success stories in this business and rarely failures. Do either of you know of any specific examples where a situation like this has happened? Either anecdotal or perhaps there is a thread on this site? I am going to do a quick search, as I'm curious to see the fallout and legal repercussions of such an incident. 

Hi all. I'm sorry if this question was asked a dozen times before, but I was wondering what kind of documentation/contracts go into making sure one partner on a flip/BRRR property doesn't screw the other over. I've done deals with family members before on buy and hold properties where it is verbally agreed upon that the profit will be split 50/50, but now I have peers recommending partnering with a stranger that knows a specific market and how to flip in that market better than I do. The idea would be to use my own money to finance the entire project and split the profits 50/50 with someone that can do a better job of finding the deal and managing the project better than I do.

If I'm using all my finances for the project, wouldn't the property be in my name? How does my partner know I am not going to sell the completed project and keep the money for myself? What procedures would we follow in order to assure neither of us get taken advantage of?

I'd appreciate any replies as I'm really trying to learn the process. Thanks in advance and I look forward to hearing what you guys have to say.