Partnership for fixer upper project

[Adeel Riaz]

I have received an offer from fixer upper professional who is also a real estate broker to invest in one of the property.

The offer is that I will invest 100% on the project ( down payment and rehab cost etc) and he will manage the contractors and rehab work. Total rollover time to flip the property is approx four months. The profit will be 50% each.

This share percentage doesn’t look ok to me as i am investing 100% with all the risk involved and he is asking for 50% share from property proceeds for project management service only. This 50% is in addition to commission he will charge for property selling.

May I know from community around to what percentage make sense in this deal ? And what I need to know around contract terms etc.

[Jonathan Greene]

If you want to be taken for a ride and lose money, definitely do this deal. It NEVER works out that way when you front the money and they do the work and you split the profits. They will assess every extra cost, the time will go way over while you pay all the holding costs. If you have the money, what do you need him for? Go find your own deal, your own contractors and take all the profit. He is trying to triple dip by getting paid from the contractor referral, the profit and on the listing. RUN AWAY.