Long distance JV. What's their skin in the game?
I'm looking to JV an out-of-state property. This would be my first time investing out of state and first time forming a partnership.
Since I have the deal, but obviously can't handle the rehab and marketing, I reached out to a local team to help with the deal. One is a general contractor and the other is a licensed Realtor. My thought is that I would bring the deal and the capital, and they would rehab and sell the property. It seems like a good match. But then I started thinking- "What skin do they have in this game?" Yes, they stand to make a decent profit but what keeps them from walking away from the deal other than the profit motive?
Is there another way I can structure this deal to make sure they uphold their part of the bargain?