Partnering with Contractor on 50/50 Fix & Flip – Looking for Advice

[Payson Kelley]

Hey everyone,

I just lined up a contractor who’s interested in partnering with me on a fix and flip. The setup we talked about is: I’d source the deal and get it under contract, and he’d handle all the renovations. We’d split the profits 50/50 through a joint venture.

Has anyone else here done something like this before? How did it work out for you? Any challenges or things you wish you set up differently?

Also, where’s the best place to actually get a JVA contract? Should we just download a template somewhere, or is it better to sit down with a lawyer and have our roles/responsibilities clearly defined in writing?

Appreciate any advice or lessons learned you can share.

Thanks!

[Alan F.]

Quote from @Payson Kelley:

Hey everyone,

I just lined up a contractor who’s interested in partnering with me on a fix and flip. The setup we talked about is: I’d source the deal and get it under contract, and he’d handle all the renovations. We’d split the profits 50/50 through a joint venture.

Has anyone else here done something like this before? How did it work out for you? Any challenges or things you wish you set up differently?

Also, where’s the best place to actually get a JVA contract? Should we just download a template somewhere, or is it better to sit down with a lawyer and have our roles/responsibilities clearly defined in writing?

Appreciate any advice or lessons learned you can share.

Thanks!

 Andy's reply was great! 

I'll add that we've seen plenty of posts on the forum where loosely structured agreements have gone south. I would highly recommend having a lawyer familiar with Virginia Contractors license law and Real Estate draft the JV.

Im also a bit skeptical why a contractor would enter into such an agreement. Is he slow on work? Why wouldn't he source his own flip?

I would vet him carefully; If you type how to vet a contractor in Virginia into Google you'll find links to DPOR website and other good suggestions.

Not trying to be a buzz kill, just want newbies to be successful.