Hi, I am in the early stages of building my team for my first BRRRR project. I have found a skilled contractor that I trust. I have spoken with him regarding my interest in real estate investing. He is interested in partnering in a project. He would be willing to do the rehab work at cost and I would provide the funding. I am interested to know if any fellow investors have had a business arrangement like this and what is a fair deal to offer my contractor partner? I was thinking a percentage of the profit after the refinance. I would appreciate any thoughts on this.
I have never partnered with anyone. I tried a couple of times and the split was never enough. Go your own way. Buy your property, have him do the rehab and then go away. It your deal, not his.
If not, He will make money on the rehab and then get a chunk of the profits and you will get whatever little is left and a sour taste in your mouth. Because you will have a huge loan on a property/ He will get a lot of money and be gone. It would be hard to make work
Thanks Arian. My thought was to motivate him if he had some 'skin in the game'. I may be inviting more challenges and to your point, regret.