Sometimes a remodeling opportunity comes along that is a little out of our area of expertise but could be quite profitable with the right joint venture partner.
A few years ago a retail painting contractor I know was offered an opportunity by one of his customers to estimate a major remodel for this customer at his law offices. This man has taken on small remodels now and then but this was a major “gut the entire building and rebuild it” type of job going for a few hundred thousand dollars.
Excited about the possibility of getting this job and knowing he was in over his head, he called me. We discussed it and I agreed to do the estimate to see what the possibilities were. Once I completed the estimate I agreed to meet with him and the customer.
Long story short, we got the job and we came to an agreement that our company would manage the project and be paid a fee for that; he would handle all the painting and wallpaper; then we would split the profits evenly. The job was quite profitable. My friend, the painting contractor, was thrilled with his share of the profits; and everyone walked away happy. The following year we did another project for the same lawyer’s daughter and once again we joint ventured it. It also turned out very well.
A year before these two projects, in November, I was brought a set of plans for an industrial building remodel by partners in a small construction company. I will never forget their line to me. “We think we can get this project but we tried to estimate it and are lost.” We formed a joint venture similar to that mentioned above and had ourselves a nice winter project that was good for all of us. We even brought in another small contractor and put all his people to work too.
Do not pass over these types of opportunities. If one crosses your path, look around for someone who has the expertise or capital that you need and work out an arrangement. A share of the pie is better than none at all. We have done more than a few of these and so far they have all worked out well for everyone concerned.
If you want to know more about it, contact me. Good Luck!
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