Honesdale, AL · Member since 2008 · 5 posts · 0 votes
I am starting a new property with an investor, They are going to front the money, while I am going to rehab the property. I want to keep this investor happy, as this is our first deal and could be potentially a good partnership. After all expenses are taken out, what would be a fair split of profits?
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
17y
What other roles are you guys going to play in the deal? Who'se going to pay carrying costs if it doesn't sell right away? Maybe a little more info would be helpful here.
Honesdale, AL · Member since 2008 · 5 posts · 0 votes
17y
We are going in with a Cash offer, the money partner will be responsible for all costs associated with the rehab, When the property is put on the market, we will split the carry costs, tax, and electric. The money partner is pretty much going to be a silent investor. I will be handeling all the day to day work, and provide her with a statement at month end. I will be on property daily, and do 90 percent of the work myself.
Real Estate Coach · Jackson, MS · Member since 2008 · 18 posts · 1 vote
17y
The saying around here is that "Money takes halves". Your partner is taking all of the financial risk while you are doing all of the work. I agree with John.