Updated about 8 years ago on . Most recent reply
Partner as contractor for flip and split profits
I have a good friend who has a historic view condo in need of rehab. She has moved in with her Mom and the condo has been empty for a couple of years. She wants to sell. But it's not in good enough condition to retail. I'm thinking of making her a partnership pitch. Here's what I'm thinking:
She owes about $45k on the condo. She is not capable of participating financially or physically. It needs about $15k in rehab cost to get to retail condition. I will be her contractor partner, invest the full $15k in repairs and perform the work. It will probably take 2 - 3 months to complete rehab. I would like to propose splitting the profit after the sale. It should sell for about $120,000. Would it be reasonable to propose a 50/50 profit split?
