Partnering on a Flip

[Luciana Gresham]

Hi,

I’m new to flipping and thought it would be best with a partner. We have several qualities /skills to compliment each other. Such as I have my real estate license and have been studying this topic for a while. She is an interior designer and has an eye for design. She also has a reasonable contractor. What advice/ tips could you give for teaming up on a flip? Are there any standard operating agreement templates anyone could recommend? Thanks. 

Luciana 

[Kenneth Mooney]

Hi Luciana, it sounds like already have the partnership and are asking the best way to execute it. This is my favorite thing about real estate - there is no one way to do things! 

A couple of questions.... 

1. Who is funding the deal? If one party is funding the deal - they would likely want the property titled in their name and to pay the other partner once all funds have been settled on the deal. If both parties are funding equally - title in both names equally. 

2. SOP? - On a one by one flip basis - I do not think this is necessary. I would just purchase the property and work together to get the deal across the finish line. If you are looking to do multiple properties together and build a business together it likely would be a good idea to create an entity , articles of organization, operating agreement, and standard operating procedures. 

Hope that helps!

[Eliott Elias]

Use a JV agreement (joint venture). Happy to share mine

[Kerry Noble Jr]

You can have a JV agreement or an operating agreement in place....

be careful and just make sure everything is written down

[Luciana Gresham]

Quote from @Kenneth Mooney:

Hi Luciana, it sounds like already have the partnership and are asking the best way to execute it. This is my favorite thing about real estate - there is no one way to do things! 

A couple of questions.... 

1. Who is funding the deal? If one party is funding the deal - they would likely want the property titled in their name and to pay the other partner once all funds have been settled on the deal. If both parties are funding equally - title in both names equally. 

2. SOP? - On a one by one flip basis - I do not think this is necessary. I would just purchase the property and work together to get the deal across the finish line. If you are looking to do multiple properties together and build a business together it likely would be a good idea to create an entity , articles of organization, operating agreement, and standard operating procedures. 

Hope that helps!

[Luciana Gresham]

Quote from @Luciana Gresham: Hi! We are in the planning stages still but believe that we will both be funding the deal. This is great feedback Kenneth! Thanks a bunch!

Quote from @Kenneth Mooney:

Hi Luciana, it sounds like already have the partnership and are asking the best way to execute it. This is my favorite thing about real estate - there is no one way to do things! 

A couple of questions.... 

1. Who is funding the deal? If one party is funding the deal - they would likely want the property titled in their name and to pay the other partner once all funds have been settled on the deal. If both parties are funding equally - title in both names equally. 

2. SOP? - On a one by one flip basis - I do not think this is necessary. I would just purchase the property and work together to get the deal across the finish line. If you are looking to do multiple properties together and build a business together it likely would be a good idea to create an entity , articles of organization, operating agreement, and standard operating procedures. 

Hope that helps!

[Luciana Gresham]

@Eliott Elias Hi! Thanks so much. I would love to see a sample of a JV document. I appreciate your feedback.

[Eliott Elias]

Quote from @Luciana Gresham:

@Eliott Elias Hi! Thanks so much. I would love to see a sample of a JV document. I appreciate your feedback.

 Whats a good email?