Ideas on structuring deal
Hello all,
My brother and I are debating whether to partner or not on a SFH REO deal in my area. He lives about 1 1/2 hours from me. He will be getting a traditional loan through the bank with 20% down payment. He will have to be the only one on the loan since I already have 2 loans under my name.
We are discussing different ways to partner on the deal or whether or not to partner at all. My wife will be acting as the agent in the deal.
1. My brother puts up all the down payment and owns the property outright. He pays me to manage and get tenants in the property.
What is a fair price to charge him for this? Is it common to negotiate an equity % ownership of property without putting up any money?
2. We both put up 50% of down payment but the loan is only under his name. We both take 50% ownership. How would we go about doing this since he is on title and I am not?
Or I put up 40% and he puts up 60% but I handle all the property management?
Does anyone have experience with these types of arrangments? Any advice would be appreciated.
Thanks,
Jeff