3 way JV on Flip

[Ben McMahon]

Ive done a lot of flips and JVs, but I wanted to get some feedback on others experience of structure in todays environment.  

I've got a designer who I have been doing work with, and she wants to do some high end house flipping.  In the past Ive done strait 50/50 partnerships with private investors, and also Preferred returns.  I am trying to figure out the best way to ad a 3rd party into the deal.

The designer and I are planning on putting together something for our potential capital partner.   What are terms that should make everyone happy?  

[Mark Williams]

Quote from @Ben McMahon:

Ive done a lot of flips and JVs, but I wanted to get some feedback on others experience of structure in todays environment.  

I've got a designer who I have been doing work with, and she wants to do some high end house flipping.  In the past Ive done strait 50/50 partnerships with private investors, and also Preferred returns.  I am trying to figure out the best way to ad a 3rd party into the deal.

The designer and I are planning on putting together something for our potential capital partner.   What are terms that should make everyone happy?  

 Hi Ben, 

When it comes to structuring a high-end house flipping project involving a designer and a potential capital partner, it's essential to create terms that are mutually beneficial and align with everyone's contributions and expectations. You could consider a simplified approach by offering the capital partner a fixed return on their investment with no equity ownership. This way, they receive a predictable return on their capital, and you and the designer can retain full ownership and control of the project. It's a straightforward arrangement that allows your capital partner to earn a fixed return without being involved in the day-to-day operations of the project. However, consulting with a legal professional to formalize the agreement is still crucial to protect all parties involved.

-Mark