Well, without the advice of anyone here, I went ahead and negotiated my deal.
Seeing as how I have such vast knowledge of how to find and lock up properties , I have worked out an upfront take on the profit (the flip fee)to the tune of $3k a piece! Any purchase, every purchase of a property that goes through, where my name is attached to the find I get paid that finder’s fee.
Secondly, since the flip fee can be so different on each deal (sometimes high, sometimes low) I worked out a back-end profit sharing deal. I’ll be pulling 10% off of each home sold by the company.
Man, I’m thrilled! This provides me the opportunity to make money, save money and learn the rehab piece all in one shot. It should be good.
Anyone have any tips or think I settled too skinny?
Okay, here’s the deal. I’ve been interested in REI since age 17, 20 yrs ago! I’ve done a couple of deals when times were good for me financially back in Indiana. Made good money too!
I’ve had some rough times when my business failed in Indiana.
I’ve moved out to Oregon and, after two years, am finally getting back on my feet. In the course of these two years I’ve met some really great folks who have money and are interested in using my knowledge and skills to help them find properties and either flip or rehab them based on their cash flows at the time.
My big issue… I don’t know Oregon law. I’m being told by a couple of sources that in order to FLIP homes I’d have to have a developers license and the local CCB is tightening their grip on investors, calling them developers, and requiring bonds, licenses and such.
The people I can hook up with have the cash, have the licenses and are ready to go. How should I structure a business relationship with them without getting too tied up that I can’t make a decent profit?