Thinking about partnering with a contractor.

[Ben Hoekstra]

So what I’m thinking about doing is putting up the money for a flip my self. Then working with a contractor friend of mine who would then put up labor and materials and after we would split the profits off the percentage of investment we have at the time.

I’m wondering if this is a good idea?

What kind of risks could arise?

What sorts of things would I need to be doing to protect things?

I feel as though this could be a lucrative option for all parties involved but I’m not sure if this is something that people do a lot of it’s safe and makes sense to do? Or if it would be better for me to take on the whole cost and profit my self with all the risk to control more of the deal. Any advice people could give me is much appreciated.

[Ted L.]

The hardest part is finding the deal. It’s pretty tough these days to find something on the MLS and make a good profit. So who would find the deal? Then you are outlaying all of the money for the project. Are you buying with your cash and then providing all materials with your cash? Are you physically going to purchase the materials as well?

Is the contractor only providing his own labor? Or will he also be paying for others to assist? Are there subcontractors involved?

I really think you are better off just working alone and hiring a general contractor and paying them their normal rate.