BiggerPockets

Here's the deal...
My husband and I are working with an investor on buying properties in our comm. My husband owns a construction company and does a lot of rehabbing/remodeling on houses. Investor lives 3 hours away.
My hubby and I are doing all the leg work, finding houses, seeing them, closing on them, getting everything hooked up, fixing them, renting, doing the checkbooks, bill, etc. Investor is obviously giving us the $.
I am curious on to see what you guys would suggest on what $ you think we should be getting per house (we'll have 7-10 within the year) and what he should get.
Orginally the investor was going to get 12% of the total invested per house and we were going to get $100 per month per house when rented.
We just wanted to know what you guys thought and if there's a formula that you use, etc...

Thanks!

We are renting them for 3-4 years and then when we sell we split the net profit.
Meaning if we buy a house for $20k put $10k into we would have $30k invested. If we were to sell at $60k - investor would get his $30k back and then we would split the net profit of $30k in half.

but what about prior to selling the house... when we are renting them for 3-4 years - how should that work?

I would first accumulate enough cash to deal with a vacancy, a nasty eviction or a big maintenance problem. Then, distribute the cash flow 50/50 between you and the investor. If you have to dip into the reserves, stop making distributions until you rebuild the reserves. When you sell, split any reserves 50/50.

Much easier to do the investment as a loan. Borrow a specific amount from your investor as a first mortgage on the property. Make monthly payments at an agreed upon rate. Pay off the loan when you sell.