Hi all! I am looking to get some ideas on types of partnerships that have worked in my situation.
I am a contractor with as small home remodeling business and can do just about any type of home repair, interior or exterior. I have been actively trying to learn as much as I can about investing in real estate and plan on making the jump soon by house hacking.
In the mean time me and an investor and friend have been discussing the idea of becoming a partnership and investing a flip property.
He knows more about the ways to purchase, has connections with lenders and banks. Has experience investing in rental properties, knows the area and potentially will be paying more of the purchase cost whether it be out right or a loan.
I have 10 years experience in every aspect of home remodeling, interior and exterior. Electrical and plumbing included. So i will be able to preform any and all rehab myself and if for some reason I can't do it I can find trusted competent tradesmen to do so. I can accurately judge the approximate costs of the rehab work and materials that will be involved. I live out of state but have flexibility to move and live in/work on rehab for expedited finish date.
Im looking for ideas on how to split the costs/ profits of the project if he were to foot the purchase price. If it was a loan vs an outright purchase of the property, meaning if he pays a % of the property vs the total price? Or if we split the loan or purchase price 50/50? How we spilt up the material or if he's covering the purchase do I cover the materials? Do we put a set hourlyvalue on my time that will be involved in the rehab and his connections and knowledge from past deals?
Any help would be much appreciated!
