Hi Sharika: Great question! I would recommend working with a real estate attorney to start an LLC for the house flipping business and to create an operating agreement which outlines the business’ functions and financial decisions. I would also have the lawyer create a partnership contract between the two of you. This should outline each of your responsibilities, what’s expected, and how profits and dividends will be paid and in what amount. It will also have a clause about what happens if the partnership is dissolved.
Some things to look for in a partner are reliability, trust, business sense, rational decision making, working well with others and previous real estate experience. You want to work with someone that you can get along with and completely trust to make decisions in your absence. It’s also so important to have separate responsibilities so you’re not stepping on each other’s toes. For example, maybe you are in charge of the contractors and design and he/she does the research, paperwork and works with the realtor. Here’s an article on how to start a house flipping business which I think you will find helpful. Check back on our site because we always have fresh content. I wish you the best of luck and would love to hear about how everything turns out.