Question on forming a JV with a friend
Hello BP, I've tried this post on another forum; no response, maybe I was in the wrong forum:
My dad & I are considering entering a joint venture with a good friend of mine who is an GC. We would like to flip to earn capital for future buy and holds. We plan to use an investor agent (screening now) for buying & selling, at least initially. My questions are:
1. Should we form an LLC or just do a joint venture since this is our first flip. If LLC, can we do it in another state since CA is so expensive.
2. Should we split the profit 3 ways or should my dad & I get a higher percentage since we are putting up HELOC money (dad 120k, me 80k). Also, I plan on spending 15-25 hours a week on the flip myself (I'm pretty handy).
3. Should we just pay my contractor friend his rate and go 50/50 with my dad? We've all heard the saying," A partnership is the hardest ship to sail", & I don't want to go down in high seas with my dad & a good buddy.
Thx for your input BP! Kicking myself for not finding you earlier.