Seeking advice to form a fix n flip business partnership

3 Replies

Hoping for insight, pros, and cons of forming a partnership for fix n flips and perhaps buy and hold rentals. I bring capital, a real estate sales license, and lead gen/marketing to the table. My potential partner is a GC who provides superior rates and quick completion.

@Liz Kazeva Sounds like you guys have complimentary skill sets...may be a good match. JV's are all relative. And truthfully it's impossible to know if they will work until you dive in. Just don't get over exposed or do something you are uncomfortable with.

Good luck

Looks like a good idea to partner with someone when you're starting out! The contractor who is motivated to finish the project on time and on a budget is so hard to find! As long as you trust this person, I would go for it. The only downside I see is that there is always a risk of him not being reliable and not performing the way expected. If his finances are not involved in the project, then he doesn't risk anything while you are risking your savings, so think about how you can decrease this risk.

Originally posted by @Liz Kazeva :

Hoping for insight, pros, and cons of forming a partnership for fix n flips and perhaps buy and hold rentals. I bring capital, a real estate sales license, and lead gen/marketing to the table. My potential partner is a GC who provides superior rates and quick completion.

 The question seems to be, is there enough incentive to the contractor to work at a discounted rate? Also, how much profit would you have to give up for the discounted contractor rate?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you