How to partner up on Fix & Flip
I am a newbie investor and trying to get my feet wet on fix and flips. I know this investor-A who does fix and flips as his main source of income, and I'm trying to partner up with him so that I can watch and learn what he does in details of this work. He's an investor who uses HML on most of his deals and probably does 1-2 every month or every other month.
I am planning to put in 20k-25k to purchase the property and bring in another investor-B(not experienced) who will put another 20k-25k in and let me and the other investor-A handle all of the fun stuffs that are going to be involved on fix and flip.
The investor-A already has his contractors, laywer, broker in his team and he's using me and the investors-B's money to do the deal.
Some of you might say why not just do the deal by your self or with investor-B? Yes I've thought of that and I would want to also, but really I don't know where to start and how to do it with confidence. And because it's my first time, I want to do it right with the person who knows what he's doing.
So if these 3 people are teamed up to do that, what's the reasonable percentage to split the profit?
Home Price : $25k
Material and Labor & Holding Cost : $25k
Investor A : expericed with team (lawyer, contractor, broker etc.)
no money involved / will do most of work
Investor B : no ecpericence / will put in 50% of money / will not be
doing any work
Investor C (me) : no experience / will put in 50% of money / will be
doing some works and learn from investor A
Any thoughts and ideas would be appreciated!
Jason K.