After about 2 years and some moderate renovations I sold the home for a healthy profit.

I am thinking about getting involved in a joint venture flip with a contractor, but I am unfamiliar how a joint venture typically works.

Purchase price: $350,000 Cash invested: $50,000 Sale price: $535,000 Wholesaler Joint Venture Deal with WholesalerScope of work:• Interior/exterior paint• Like for like kitchen and bath upgrades• Millwork• Siding repair• Removed converted garage• Flooring• Appliances• Minor electrical work• Upgraded main bathroom.• Electrical/plumbing trim out/finish trim• landscaping How did you find this deal and how did you negotiate it?

A few common scenarios are: Private Money Lender (Debt)Joint Venture aka JV Partner (Equity)Equity Partner (Equity)When you ask for a loan and the investor is secured by the property as collateral it's straightforward.

This could be accomplished with a few partners in a joint venture however it sounds like you aiming at real estate syndication.

@Dhiraj Chhabra Or use the section121 exclusion and you get to keep 250k or 500k if married filing jointly in profit tax free.

I have talked with him about my recent discovery and growing love for real estate and we have both begun to speak of doing a joint venture together. 

(Note: if you are a licensed real estate professional, just because you can sell your building yourself, it does not always mean that you should-if you have partner(s), this could be interpreted as a conflict of interest as you stand to receive a commission off of a property you own, taking away from the joint profits of your joint business venture.

Generally speaking the joint holding of rental real estate is considered a joint venture and not a partnership. 

Also make sure you're taking the depreciation deduction as well, should be a pretty healthy number.