I own and operate a duplex and cash flow an amount I’m happy with. I’d like to increase my portfolio but don’t have the cash. I know someone who I would trust going into business with and wants to invest money into something.
How would I propose a deal with him to make it fair for both of us? I would do the work, as far as researching properties, working with the RA and most importantly, managing the property.
For simple numbers sake, let’s say the multi family sold for $100k and there are three units at $800 per month. I could bring $2k and he’d bring the rest of the down payment. In the end, I’d like this to be a 50/50 partnership, but I’d obviously have some catching up to do. I’d want to offer his down payment back, plus a percentage along with passive income. I’d also want to be part of the passive income.
Any ideas, as far as a framework for a deal?
@Thomas Ackley , here is a similar recent thread that you might like to look over, to see if anything jumps out at you, and/or may lead you to refine your question:- https://www.biggerpockets.com/forums/50/topics/502...
Thanks for asking. Welcome to BP. Lots to catch up on. All the best...
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.