Newbie Partnership Structure

3 Replies

Had a few questions when it comes to structuring a deal with a money partner. I know the options are endless but I was hoping to get feedback on my plan. For my first BRRRR property I have a partner that wants to be the money guy. I will find the deal, oversee the contractor, reappraisal, and oversee the management of the property for as long as we own it. He will provide/find the down payment, loan, rehab money, and refi.

I was thinking of having a 60% cut of profits for myself and 40% profits for his efforts. When it comes to the finer details, that's where I'm a little fuzzy. Would it be my partner's name on all the loans and then both of our names on the title? Also, if there's any cost overages on the refi would that be provided by him? What if the refi doesn't cover the costs of the project, who eats that?

Originally posted by @Rene Doyle :

Just curious why you decided on 60/40 versus 50/50?

I felt a little bit like, while the money investor is taking a huge risk, I'm doing all the work. Say we co-own the property for 30 years. That's 30 years of my time and he just has to do a little bit of work right up front and that's it.