Looking for structure advice.

[Tyler Warne]

I am looking to invest with my father, he currently has 2 single family houses which are in his town. I have a 4-plex under contract and don't have the cash to purchase it on my own and I am curious how investors have split both the equity and the repayment. 

I was thinking of me taking a 10% management fee and my father making a 13% rate of return on his down payment then splitting the equity 50/50. Does that sound OK from what others have done in the industry?

[Justin Spaulding]

@Tyler Warne, you decide that! I have seen it done so many different ways. That's the cool thing of deal making. It depends what everyone is looking for. My last project I didn't have to put anything down, my investors put in $130,000 and that covered repairs and down payment. I sold them 50% of the shares. I kept 50% of the shares for being the manager and for bringing the deal to them and putting it together. I also get a monthly management fee of 8% revenue. Yes, my investors are taking a much lower return for not going out and doing a project themselves but they will take a 6% return on their real estate investments since it is not their go to thing....its better they have their money with me than in the bank at a 0% return. Best of luck man!