We are looking to do our first enhance and resale, and are contemplating entering into a partnership with our contractor. We have worked with them on four other projects (three personal and one on our rental). If we do a (flip), we need a crew that can be dedicated to the job, so going in partners with him seems like the way to go since he would have monetary motivation to get the work done quickly (his crews are usually spread really thin; therefore causing delays). He is interested in working together and we told him we would put together a proposal.
First, is this a good idea? Second, are there any watch outs or things that should definitely be spelled out in the proposal/contract? We are proposing that it be a 50/50 partnership, with us handling/managing the money and budget part, and him managing the crew/trades schedules. Both would have equal say on the floor planning/design, etc. He is a great contractor with a good crew who does quality work, so I would love to see a long-term relationship develop, but want to be careful.
Has anyone done this and partnered up with a contractor on a flip? Any advice?
Thank you!! You all are so much help.
I'm a contractor and do this often. It works out well. Just be sure to be clear and transparent. And it works out for both parties