Good morning All. I am looking for opinions. We have been investors for years. Have never done a Joint Venture. I was asked by a new investor to possibly do so. They are bringing the project. (Decent, solid deal, needs a good amount of work. Just what we normally do. Round Numbers are roughly Purchase $230K, Fixup $110-120K, Retail $550K - will be marketed first of february 2018 if it goes as planned) I will provide the funding, and my own Crew, and Network of Subcontractors, marketing etc. In exchange for a split on profit - 65% us - 35% them. New entitity (to be created), I will control 60%. They are not really wanting to just flip me the project.
A) Do the deal.
C) Maybe charge some sort of management fee upfront maybe, or some upfront, and a profit percentage, and walk them through the process, start to finish using all my resources. (Including $$) If so, what sort of upfront fee, and back end percentage is fair?
So you are giving up 35% of the profit to someone who is only bringing you the deal? Way too expensive. If you want to do the deal - give whom ever it is a referral fee. That lead is way too expensive to give up that amount of money for a lead.
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