I have a person that lives outside the US. He wants to partner with me in a few buy and hold properties. He's pretty much gonna provide cash.
What would be a "fair" way to approach this?
He's proposal was:
He puts the down payment along with closing costs. He has 25,000 dollars to put in right now.
I look for the property and we buy it.
We pay for Property management.
We both own the property and we both split cash flow in half.
Does this sound fair? Initially he wanted me to put half of the down payment, but it didn't sound fair to me.
Thanks in advance for your opinions!
It all depends how you look at it. He wants to invest and is not able to because he lives outside the US, that puts you upfront with the investment properties for research, paperwork, etc. I just listened to a podcast yesterday that you might want to listen to and might help you answer some of your questions.
BP Podcast 23:
Thanks man!!! I'll definitely listen to it :)
This sounds like a sweet deal. Make sure you guys have the proper legal arrangements and ownership structure to protect yourself and the investor.
I'm assuming the property will be or has been financed with a mortgage.
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