Clarification on acceptable equity partnership offering

2 Replies

Good morning BP,

I'm new here and new to real estate investing and eager to start my first deal before the end of this year. Having picked a direction that I'd like to start - multi-family home, northwest metro Detroit area - I'm interested in finding a partner to work with. I'd like to offer equity in a deal, however my strategy for investing will generally be buy and hold. Can offering equity in a deal like this, with a partner more experienced than myself, include the cash flow/cash on cash return? Or are equity offerings generally for cash returns upon selling?

Thanks for reading and have a great day!

Hi, congratulations on your new venture. To answer your question, the contribution can go either way. You can tailor every aspect of the deal any way that you'd like. 

Thank you! So much of real estate seems to be limited only by ones own creativity. I'm so excited to get going in this field!