Updated about 6 years ago on . Most recent reply
Flipping homes newbie
My brother is a fairly new licensed contractor and started his business about 5 years ago. He is ready to start flipping homes. He is asking me to be his partner. However, when discussing how we would distribute profits, he said we would go halfers on everything, except he would charge me full price for the construction job his company does on each flip. I asked why not half and he said because it carries his name, not mine. Is this a fair/equal deal?
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It would only be fair to give him the price that he normally charges if it's competitive with the rest of the market. The guy has to make a living. Youre basically trying to devalue a skill that you probably don't have. Your flip might take him a month to do easy. What's he supposed to do not pay his workers for a month or two? Not Pay his suppliers? Not pay his general liability insurance or his mortgage? When you own a small business the Bills keep on rolling in. You basically suggested to him that he should make half as much as he does now for the same amount of work.
This is why contractors don't like to work for small investors. They want everything handed to them for free and think contractors are making a killing.