Partnership Advice

3 Replies

Hi All! 

Hope all of you are doing well! I am truly thankful to be part of a community so uplifting and encouraging. All of you are rock solid! With that said, I do have a question and would appreciate your rock solid expertise on...

I am brand new to the RE investing side, but I do have my license and would love to help anyone looking to purchase or sell. But, I have a good friend that is also wanting to partner up with me to purchase a property to flip He did mention on bringing on a 3rd partner who is very skilled in rehab and knows how to swing a hammer and is ALSO a GC. My question... how should we structure the partnership? Should it be just us 2 and hire the GC to work on our projects or have him be a vested partner? What are pro's and con's ? Any help would be greatly appreciated! 

Thank you!

I'm not an attorney, and this is not legal advice.

If I were looking at a situation like that, I might see who brings what to the table exactly and figure out the value. Then I'd look at some kind of entity for just the project as a one-off deal. If everything went smoothly, then look into something more permanent. Vested GCs seem to get things done faster.

Date a little bit before you get into bed with anyone.