Buying with investors, splitting profits

5 Replies

Looking for some input on how to break down the profits. Let me propose a few scenarios: First three buy and hold rentals.

1. Person A finds the property and negotiates the deal, manages the property. Puts in 50% of down payment.

Person B does nothing except contribute 50% of down payment.

2. Person A finds the property and negotiates the deal, manages the property. Puts in no money.

Person B does nothing except contribute 100% of down payment.

3. Person A finds the property and negotiates the deal, manages the property. Puts in no money.

Persons A, B and C do nothing except contribute 100% of down payment.

How would you split up the monthly profits and how would the stake in the equity of the house be divided?

4. How about this flip. Aspiring investor partners with realtor on a flip. Investor puts up all the money. Realtor, who is an experienced flipper, walks aspiring  investor through the process using her network of contractors.

Thanks!

Id be interested in this as well.  I have no money to put down right now as Im digging my way out of debt but I DO have access to a builder and his contractors that others wouldnt have.  

Daniel, sounds like you much to offer. 

bump for a little insight from the experts!

I'll take one more attempt at getting some info here...

Fair is what 2 parties agree to do . Money , labor or experience . Each person will believe their contribution is worth more than it is . ( Money speaks loudest )  You sit down make an agreement sign it .

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