Hi! I’m a new investor having less than 5 properties, do not have a w-2 job, excellent credit. I want to build more capital and expand my portfolio, but afraid I may be running out of finance options.
I have someone that wants to partner with me who doesn’t have capital but has a w-2 job and decent credit. Has anyone ever partnered this way and if so how? We want to do a flip together. I’m thinking I fund the down payment down and we split the profits. Would love advice from anyone who has done anything similar. Thanks!
@Kisha Peterson keep it simple on how you work it. Put it in writing that after any contributions to the project are deducted by either party you split the profits 50/50. I have done this on several deals and it works the best. But be sure you put money back into the business too in order to fund the next deal regardless of your exit strategy. Set up an LLC too. Best way to document how commissions and profit splits are handled when you put together company minutes, etc.
@Joe Coleman Thanks so much for your reply! So you think a 50/50 split is fair in this case?