Posted by Brent_IL on January 12, 2003 at 11:23:08:
You need to lock-down your relationship with the M.D. The money guy is the most important.
Most M.D.'s can qualify for a loan without a mortgage broker connection. There are a lot of general contractors in Vegas. Since your contractor is an active player, I’d give him the choice between charging customary repair prices, or providing reduced rehab costs in return for a percentage of the profit.
How Do I Structure Partnership Profit-Wise? - Posted by Bill in Vegas
Posted by Bill in Vegas on January 12, 2003 at 04:07:02:
Hello Investors,
I have to laugh at myself. Each time I come up with an ideal or obstacle I wrestle awhile with how to implement it. Then it finally dawns on me “Oh, ask you guys” duh. LOL. Here is my latest quandary.
I have been birdogging for $1200 per house for this particular general contractor. I am putting together a working partnership with a Doctor (the money/superb fico score); and this Investor/General contractor (the rehab guru); and Me the (finder of houses). None of use can really do as well without the other. Except the contractor, does have great connections. He has a partner who has a mortgage company and is a real-estate broker on paper thus has access to a key and MLS.
My question is this how should the profits be split? Let?s say average profits per house is 15k in pocket net after all expenses. I am not sure how to ask for more of the pie here, this is main fear. We three meet for dinner the 20th.
They both are decent levelheaded guys. The MD wants me and him to do deals and split 50/50. I told him not for a year until I really understand and get educated on the business. I don?t want to lose his or my money.
Thank you in advance,
Bill