Updated over 3 years ago on . Most recent reply
Taking on investors - how do I structure the deal
I have someone who wants to supply the funds for a residential SF home. I read Ben Leybovich say he started with getting 25% of the net rent and 25% of the equity. That sounds great if I can get 25% of the rent and equity. I assume the investor would pay 100% for the home (0 financing). My cash ontlay is $0. I will remodel the home and manage the tenant. Assuming that is the case, why would an investor do the deal? The investor would have an income from the rent but sacrifice 25% of the growth? Can the same thing be done with financing?