"A wise person should have money in their head, but not in their heart." – Jonathan Swift

Your dreams of being the boss aside, your business isn’t going to last long if you don’t handle your money right. If your business is a partnership, you have special considerations – such as how your business is structured and (much, much more importantly) how everybody gets paid in business partnerships.

It’s key to set up your company so everyone knows how the money flows. 

Basics of the money roadmap

First, let’s pin down what kind of partnership you have. The type of partnership can influence how the money flows within the company. Bear this in mind whether you’re an established company or just considering your first business partnership. 

Three common arrangements for business partnerships are: 

General Partnership: All partners share equal rights
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In our last blog, we covered being a better landlord on your buy and holds. Here we’ll discuss a few tips to make working with contractors a little easier, whether on a flip or rental.

First, set a plan before starting, and stick to it! The plan should have a good, clear outline of how you want the project to finish. This includes materials and a budget. Many newer investors either don’t set a budget or blow past it. This is a recipe for disaster.

Second, contact your entire list of possible contractors and get bids. Many investors, to save time, may only talk to one contractor or sub. Take the time to really explain what you’re looking for, provide the plan & budget you’ve set, and get several bids. It’s worth your time.

Third, take the time to compare and contrast the different bids. Make sure you are comparing apples to apples. You’ll need to understand how and where the contractor is making money. Is there a line-item fee? Is the contractor “padding” materials or labor? Does the contractor include labor & materials in one line-item? You may need to go back and get more specific information from the contractor. Take the time to do this.

Fourth, ask and learn how the contractor handles changes, whether those come from you or them. This seems to be one of the bigges
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