I'm about to take a Project Managment opportunity on a SFH rehab in central Florida my friend bought sometime ago. I'm gonna be "boots on the ground", handling all the repairs, design, marketing and sale parts. My partner will be guiding me - I have some knowledge and experience in RE but my partner is a mature investor. Therefore I'm looking for advice on how to structure our partnership agreement. I will appreciate any comments, especially wording/forms/templates to be signed between us for this kind of a deal. I believe it has to be on paper. We agreed that my compensation will be based on my success and efforts I put in, which we will know once we sell the house (20-30%). It's a big risk for me as I'm moving to FL to take this job and gain experience. I'm excited and grateful for this opportunity. But I also need motivation and clarity to know exactly what's in it for me financially. I'm investing into my relocation and turning down other opportunities for the next few months.
Thank you all in advance,
Feel free to message me if you have any input,
Best of luck,
Only one thing you can really do. Have your partner draft an agreement then find yourself a good lawyer who will review it for you. The money on the lawyer will be well spent!
Hi Michael, thank you for your prompt reply! I will ask my partner to draw a contract. Does it have to be a lawyer from Florida?
@Anastasia - It doesn't for a partnership agreement but it would be preferable since Florida could have some specific rules.
@Michael Tomasino awesome, thank you so much!
Have you guys discussed a general compensation range?
20-30% of what....net profit? This could be $4-$5k.
Moving for this one project, even for the experience, may not be worthwhile, even for a long term relationship with your partner. PM for a single flip is not a full time job, and there’s not enough profit doing one at a time for a full time PM.
Don’t get hung up on the idea of flipping as a full time business...it is quite competitive, the opportunities are not what they used to be and everybody thinks they want to do it.