Contractor involvement

Hi:

You want to treat your son just like any other subcontractor. Write a contract to him and pay him based on the contract. Hopefully he can do the work better and cheaper than anyone else and you both win!

Hope this helps.

Chris Brindamour

Hi,

I agree with Chris. The best way would be to write a contract with your son. Make it something you both agree apon. A contract will make him work for his portion of his agreed contract. I have never and would never agree to pay someone to do any work without a contract... especially a family member.

Wish you the best,

Ryan M.

Thank you. I agree a contract is an excellent idea. I will surely do that. But what about how to split the profit?? DO we agree to pay him a certain dollar amount and if he comes under budgit he keeps the difference? All he is bringing to the table right now is his skills. Ideas? or would it be better to help him fund a house be like the private money person?

Donna Doo

You have to be very serious at the part of the contract and advs any penalty is he doesnt go per contract agreement.
Now in ref to dividing the profits,It is a good idea. You see the more houses you go tru the more accurate your profits will be. At the begining express what you want to do and see how much he ...charge...and if it possble hove some kind of 2nd opinion. And compared it w his estimated budget.
Good luck
Angelo

Donna Doo,

You are talking about two different things here. One is having him be a contractor on "job" and the other is being a partner. Either way you would definitely want to have a contract. Most of it being common sense stuff.

If you go the contractor route. I would have him give you an overall price with a detailed scope of work. Once you agree on the price, draw up a contract including his scope of work. The amount of money he makes will be up to him. This is the way contractors usually work and can be very successful.

If you go the partnership route you still will need a contract. This could be a little tougher to deal as far as struturing a deal. You would need to figure out a percentage of partnership and I am not really sure how you could do that. Most likely you would have to make it a 50/50 deal, even though he might not be putting in 50%. I am assuming you will be supplying the money and he will be supplying the labor and materials.

Hope this helps a little.

Joe

My husband is a general contractor and so he does most of my work for me. I also use him as an unoffical inspector at the beginning of my shopping phases. He gets a set rate for that and then we neogiate a rate for the work that needs to be done. For anything he isn't licensed for ( plumbing, electrical, heating etc.) he finds a contractor for me who will do it for a reduced rate. I have had no problem with this. We right up a contract for every job and he invoices me when the job is finished and he agrees to wait to be paid until I sell the property. If it is just minor cleaning or painting I will hire my children if they want the job ( and who doesn't have teenagers that want money) I pay them a set rate also and they invoice me and I pay them out of profits. This is a win-win for us as it keeps money in the family and I don't have to nag my kids to clean their rooms for allowance.
Just make sure everyone keeps all reciepts and invoices, etc. for taxes.

By the way, my daughter who is 19 has asked if she could partner on a deal. This is a good way for your family to get interested in investing.

This is great your son is going to come on board with you. I would draw up a contract as the others said, if your son has been doing this for quite some time then I think it woukd be great to be doing this. He can get supplies at cost and you won't need to worry about getting taken advantage of. You can pay him as a regular contractor or possibly have him be a partner and get paid accordingly.

Jeremy