Private lender contract?

[Kenny Dargert]

Ok, I met someone that wants to finance flips with me, I have been in the trades for over 40 years and have been remodeling houses for ever. but the contract or offer end of things arent my strong point but im learning.

my question is this, I need to get ideas on what kind of an offer to approach her with and what would be the best to benefit us both and how to word it. Is there a template out there that i can use to do this or does someone have a good doc that they use and would be willing to share it? Im in the Denver area and have been wanting to do this for myself and not others for some time and if i can approach her with a decent offer i think I can finally get started in this flipping business.

Thanks you
Kenny

[Bob Floss II]

@Kenny Dargert Partnerships are not something that’s boilerplate or have a form document. Each one needs to be uniquely crafted. As was said above, once you do the first one, you can copy and paste for future projects, but the first one is important.

You need to figure out if you want her secured on the property with a mortgage and note, become members of an LLC together, or do a JV agreement, or all of the above.

It’s extremely important to finalize the terms before taking money. Waiting until after can lead to misunderstanding and sour the partnership before you get started.