All Forum Posts by: Dakota Cooley

All good things to consider. Like you said Ray, I would only do this is there was a good enough incentive structure in place. 

J, all good questions-and I couldnt really see myself doing it if he wasnt willing to pay the subs with his profits. 

Again, a lot of things would need to be in my favor in order for me to go through with it-which he may not like. But if thats the case than it is what it is. Hiring a project manager could be a better idea. Not worried about his work-I've seen it. But this is the sort of feedback I was looking for. 

You brought up a good point J. My line of thinking was it would give me an advantage if I outsourced this work to him so I can still keep moving forward with my work. I get what you are saying about less control-so if it were to happen I would have to make clear I would be the oversight. Also I figure bringing him into it would give him the incentive and motivation to do quick, good, cost efficient work since he would hypothetically be splitting the profit 50/50-and bringing his own money on the front end. Which is then bringing me even more, listings consistently which isnt a bad perk. 

My other line of thinking was he is in metro detroit where more than 50% of the deals would be, while im 40 minutes away in Ann Arbor so he would already be there saving me a lot of driving. If it were to be a 50/50 split-yes-I wouldnt make as much if I didnt partner, but I also wouldnt have to do the physical work that would take time away from my job while I can still reap the profits of the flips. Commission front end, back end as well. 

Im not saying youre wrong-I am just letting you know why I think it has the potential to be a good thing. But thats what I need is someone pointing out what could go wrong so I know ahead of time that if it wont work the way I need it to then there is no partnership, period. Any other things you would have to have to make the partnership work? 

@J Scott 

Question for you successful investors. Sorry if it gets a bit lengthy.

I am an investor/realtor, and I've been looking to ramp up my flip game. I have a meeting set up tonight with a contractor who I have used twice now. He asked me how he can I start doing what I'm doing, so I saw an opportunity and proposed a business partnership. He agreed it would be a good idea. 

Now my question is - does anyone else here have this sort of partnership already? I have an idea of how I'd like this meeting to go, but I wanted to see how you structured-or would structure-this business relationship.

We briefly threw out ideas of how the general structure would be, which was I find these deals, bring money partners to the table if need be, and he and his small crew do the work before I re-sell it.

Any tips on the finer parts of this partnership though? Such as pay structure for materials, profit sharing, amount of time spent at job site, cut labor costs and he pays subcontractors with profits, him bringing money up front too, etc??

 Any information would be much appreciated!

I'd say the biggest thing is learning your target market inside and out. Knowing your numbers is key. Then look for ways to finance them-whether that be conventionally, or using HML's and private money. Once you build a relationship with some lenders or other investors to form partnerships, thats when you will really start to see that it is all very attainable. Best of luck!

welcome to the forums @Michael Maloney Jr. 

I see you're from Gregory, I actually live in Chelsea so I am in your area. If you ever want to learn something you can find it on here. If you ever need anything send me a message. 

Welcome to the forums @Erin Murtagh !I'm a fellow investor in the area as well as a licensed realtor. You will find everything you need on this website. reach out whenever you need to for help. 

side note - was it seminar put on by fortune builders? 

I'm your guy. Send me a private message.

Any people from southeast michigan here know of a good contractor in the downriver area? Looking for a little help. thank you!

this forum thread has been more than entertaining. Thank you :)