New to Real Estate · Chicago · Member since 2025 · 2 posts · 0 votes
I am a newbie investor and need some really sound advice...I have a property owner who doesn't want to sell his property but wants me to raise capital for rehab for a percentage of ownership in the property. What would be your advice regarding this potential deal and how would you structure it?
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
1y
@John Campbell interesting Idea, I'm sure this has been done before, or in its simplest for is the classic, you bring the deal i'll bring the money situation. can you provide any more details? is this an owner occupant? multi family property? commercial?
if the property is already in an LLC, I'd anticipate there is a way for you to essentially "buy into" the LLC as the owner is describing. If it were me I'd want to understand how that monetary investment is being backed, and are you then responsible for the rehab or are you simply a "money guy"? I'd want significantly more percentage if I were handling the rehab and the money, personally.
The devil is always in the details on things like this, have you consulted a local real estate attorney yet? may be worth the couple hundred bucks to get a "consult" with one to understand what your options are.
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
1y
What is the property?
I would have the property appraised - then my ownership would be equivalent to the percentage of what the rehab costs. Then I managed the rehab and all that, which is worth probably another 10-15% of the cost of the rehab.
It really depends on what the property is - it sounds like a weird deal to be honest. Without a path to ownership, I'm not sure how interested I would be. I would need a path to eventual ownership.
Structure it to where you can refi, then buy him out and own the property