Sweat Equity and Partnership
I have a off market deal I would like to bring a partner but I want to be compensated in sweat equity by rolling my commission into the deal. Standard commission would be 6% so in this case at a purchase price of $500,000 would it be safe to assume my equity in the deal would be $30,000 ($500,000 x 6%)? If we are taking a loan out on the property at 80/20 LTV would my equity be diluted in that situation?