Updated over 9 years ago on . Most recent reply
Investor Split - Foreclosure Rehab Sale in Orange County
Hello BP World!
I am about to venture in to my first real estate deal and I need a little guidance on how to split fee's with an investor (whom is also a family friend).
My Aunt is moving out of the country and selling/gifting me her home in Yorba Linda for $800,000. I spoke with a contractor and it needs roughly around $50,000 worth of rehab work. I also spoke with a local real estate agent that valued the property at $1,200,000.
My good friend is willing to put up $900,000 for the home and rehab etc. He will do nothing but put up all the finances. If everything goes well and if I can sell the home for $1,200,000 I believe we can profit around $300,000.
What would be a fair split between y partner and I? Since I am bringing a good deal to the table I thought a 50-50 split would be best. It's a win-win situation for both of us.
Your thoughts would be greatly appreciated. My Aunt is looking to sell quick and I need to get moving on this.
Thank you!
Donn