So..landlords..worth it?

artloversplus
Sun, 17 Feb 2013 10:32:34 +0000

vh

here is one way to share the profit
LETS say if you bought a house to flip, you paid 100k and needs 20K of work.
If you pay all 120K you have it done and all the profit is yours. That 20K already factored in the profit for the contractors.
So, if the contractor put up that “20K”, you did not put up any thing. His share of profit on selling the property at the most is 20%. In other words, he made money by grossing up his cost to 20K AND he has the upside on the back end.

If I were you, I won’t share profit with him but will give him a “bonus” if he did a good job.

OTOH, if you bought a house for $50K and it needs a 100K worth of rehab, that is another story, because that will involve redesign and other stuff.