Starting out with little money
I'm a beginner at real estate. I want to invest but I don't think I can do it by myself yet so I'm saving up more money when I buy a rental.
I have a friend that is looking for a cash partner. I can help him come up with the down payment and construction cost. I was just wondering how I will get my investment money back and how to calculate the profit split.
The house we're looking at is 95k. I'll come up with the down payment and closing cost.
19k - down
20,000 - construction
It will sell for 160k
45k profit
4800 closing cost (3% of 160k)
Now, we're calculating profit and we don't know how much we should give to each other.