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About Christopher Flett
Expertise
I can answer all questions regarding negotiation with clients, vendors, partnership deals, co- venture opportunities, and the like. I can also comment on negotiating salaries, contract prices, and other financial considerations regarding business.

Experience
I have started 11 companies, have negotiated 100's of contracts, from commercial premises to book deals. I work with a clientele on the West Coast that is in negotiations on a weekly basis.

Publications
"What Men Don't Tell Women About Business" Business Week Entrepreneur Magazine The New York Times Chatelaine Magazine The New York Post The Washington Post The Toronto Star USA Today The Vancouver Sun Pink Magazine Forbes Magazine The Globe & Mail The National Post The Guardian (UK) CIO Magazine BC Business Magazine

Education/Credentials
Bachelor of Arts (History & Philosophy) Advanced Marketing Diploma Provincial Instructors Diploma Certified International Trade Professional

Past/Present Clients
Bank of America BC Hydro Key Bank Deloitte KPMG Duke Energy RBC Dominion Securities HSBC TD CanadaTrust Government of Canada

You are here: Experts > Business > Small Business: UK > Negotiating Business Deals > partnerships

Negotiating Business Deals - partnerships

Expert: Christopher Flett - 10/18/2009

Question
Hi Christopher,
We bought our first house a year ago. We went through 13 realtors, 3 attorneys, and 42 houses until we got what we wanted. Our last child is grown and has left the house.
We always like our last realtor, and attorney.

I’m a self employed handyman contractor. I can do anything inside one’s home. My realtor asked me to do some work in his house, this is a year later and we haven’t seen him. Anyway, we started talking and catching up on life.

Apparently, he has a banker friend and himself who is thinking about starting a company to buy low priced, overlooked, houses and fix them up and sell them, flipping houses.
Now I’ve been offered to join in as a partner in this deal, but after I’ve met the banker friend.

My question is this, it seems like the banker and realtor’s time will be minimal. Most of the information of finding and financing the houses is already part of their job. They each work for large companies. On the other hand, renovating a home takes time. The money is easy to split 3 ways, there is a number and you divide by 3. However, how would/could each of our time invested into this venture be kept equal?
Thank you Christopher,
Randy

Answer
Hi Randy,

Good time to ask these questions. You would sit down and discuss who is going to do what. You will be putting in the most time, but hopefully no capital. The banker and realtor should be putting in the financing. Each of you is bringing a specialized skill set.

You: fixing up the house
Realtor: finding the deals
Banker: arranging the financing.

I'd do a 33/33/33 split, but DO NOT take any responsibility for the loan or the capital required to fix the place up. You should not, in any way, take responsibility for the debt.

You are investing your time. Make sure that the realtor doesn't try to get any fees out, outside of the partnership split. I'd suggest forming a LLC, with a partnership agreement that states who does what, and who gets paid what. A little time getting clear on things now will save you lots of stress in the future. When money gets involved, people get weird so get all the rules in place now to govern the relationship.

Best,

Chris.

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