Partnership / Private Money

[Joe Young]

The last few years we have been flipping, renting, worked into small commercial…

We were approached by a high net worth individual who owns appx $100 mil in debt free real estate and has tons of un-invested cash. He’s getting older and wants “foot soldiers” to lock him up some small apartment buildings and small bay warehouse for him to hold… and in exchange give us a multi-million dollar “credit line” for our flip business, our intentions are to build more capital to invest along side him. 

He offered to fund any deals we find with cash and his credentials  - so basically if we lock up a $4 mil property he will cover the down payment and help qualify the loan..

What is the “industry standard” return and equity split on a partnership like this?..  He wants us to build wealth and retain equity as we are “bringing the loan”, but he is bringing the cash.  Cashflow is our goal, he just wants appreciation and doesn’t necessarily want a check every month.