Updated about 6 years ago on . Most recent reply
Structuring a partnership that holds all parties accountable
Hello all,
I am new to real estate investing, and am trying to learn/prepare for my first deal. I plan on partnering with a seasoned flipper in the area to help navigate the newbie pitfalls. In exchange for their guidance, I plan on bringing the deal, funding, time, and 50% of the profits. My only worry is, if they have no skin in the game, what holds them accountable for seeing the project through, even if things start going wrong? The most obvious incentive is the profit, but what holds them accountable if a surprise repair kills the projected returns?
What are some ways I could structure the agreement so that they are held accountable to see the project through?