Need Advise: Passive Investor Profit-Split
Hello,
I started my first flip in 2016. Once I did my first flip, some people start asking questions and wanted to invest. So far, I only have 3 deals closed and done; one in escrow; one pending (ran into wall due to permit, so I cannot sell it until permit finalized).
What is your take or experiences in profit sharing? I heard few from:
1. I purchase with my name + do the work (managing) + use 100% investor money = getting paid 20% of profit (If I'm lucky, I get to list the listing too with my RE license)
2. I purchase with both names + do 50/50 split in expenses and profit
3. I purchase with my name; do 70(investor) + 30(mine) expenses and 60/40 split (I take the lower ones) + I list the home
Any intakes from experienced investor outthere? Thank you in advance!