All Forum Posts by: Rhonda Moore

We have an opportunity to partner with our contractor on upcoming projects.  Do we need some type of signed agreement/contract?  And what is the typical split?  Pros/Cons?  

Projects:

90-125k purchase price - ARV 225-250k+ (Tennessee/Alabama/Georgia markets).  We would purchase off market deal, they will complete all work with no labor cost, share the cost of material, and split profits (should it be 50/50; 40/60).  If we stay in the price point of 225-250k the home most likely will sell fast.  We have worked with them before with no issues and they are pretty good with timeliness with great quality work. 

My thought process was to have an agreement in place and split everything 50/50 including any monies we have to bring to the table.  Any feedback would be appreciated!