Partnering with a General Contractor? - Posted by LeonNC
Posted by LeonNC on May 17, 2000 at 24:28:30:
I went to this guys house to make a lease option offer about two weeks ago (he wanted too much). It turns out he’s a general contractor and is taking a job as a qualifier for a commercial project in a nearby state. For the last eight years he’s been building residential property in my area. We ended up just talking for about three hours.
To make a long story short, he said he would like to continue doing projects in the area. He will be driving back to my area on the weekends. He said if I could find land or lots cheap enough that we could build some houses together. I would locate the lot and be his eyes and ears during the week and he would clean up my mess on the weekends.Well, today I came across a buyer with enough money and assets who wants to build a new house. I told him I would call this guy which I did. The contractor said he would be interested and we are taking the steps to see what the buyer qualifies for. So, I didn’t find any land I just came up with a buyer.
Having only recently graduated kindergarten in the REI arena I have some questions for anyone who would like to help me. I will be getting together with the contractor this weekend. Actually I’m pretty excited about the prospect of learning to build houses. You never know…I’m tired of working for the man anyhow.
Just how much am I bringing to the table by finding the buyer and giving my time during the week? Obviously my time is worth something but is finding a buyer worth that much to the contractor? Maybe this is a good situation for him with me being here, I don’t know.
There’s no risk but I’m just wondering if my time could be better spent. Not that I’ve had a stellar year so far. (Actually I’ve got one L/O I almost assigned over the weekend and some options which I’m trying to sell with owner financing…you can’t say I’m not trying) If he’s willing to do a lot of these then maybe it would be time well spent.
I assume I should have a partnership agreement with him…what things MUST I have in there? I guess each deal would be different but what percentage should I be trying to get?
At this point I don’t know a whole lot but I would just like to get a little insight as to what to expect when we get together this weekend so I thought I’d ask my friends here. Like I said I’m pretty excited at the prospect of how good this COULD be but I’m also leary because I’m on unfamiliar ground. Any thoughts will be greatly appreciated! Thanks to everyone here.