Partnering with a Contractor on a flip

[Niti Jamdar]

Hello all!  

I'm considering partnering with my contractor on a flip.  We have worked with this contractor for 2 years, and he manages and fixes issues with our existing rental properties.  So we've built a good level of trust with each other.  The purchase price would be around $150k, and we would need to put in another $120k to rehab it.

My question is - how do I structure the partnership for the flip?  Do I buy the property, and he pays for the rehab?    Do we just split the investment down the middle?  Has anyone tried this before?  Any thoughts would be greatly appreciated!

Thanks!

Niti

[Aaron McGinnis]

We had a fairly extensive thread on this not too long ago. 

https://www.biggerpockets.com/forums/67/topics/463525-any-tips-re-aligning-interests-when-partnering-w-builder