How to partner with friends and family?
We hosted thanksgiving this year, and my family spent last week with us. They come from various states, mostly the west coast.
Of course during part of our catching up, I had an opportunity to share some of the [BRRR] RE deals in the local market. With most of my deals, I was able to complete the house within 75-81% ARV, and positive cash flow.
They are all interested and would love to also invest in rentals here locally, and of course I’d love to help them. They are all busy professionals who don’t have the time to source deals, manage rehab, process the refi, etc. But of course they see the value in investing in RE long term.
They’ve asked if I could help with getting them deals, and pretty much managing the whole process until it is rented out or given to PM. They want to make it worthwhile for me as well, and asked to come up with a creative way where I could also be compensated for making the deals for them.
Any recommended ways to “partner” with others in acquiring buy/hold/brrr single family properties? They will be providing the funds, and we’ll also be using their credit for the mortgage, etc.
Some points to highlight:
- I love making real estate deals and I love my family. Honesty, I would probably enjoy helping them with these deals for them at no “cost” , but it’s rewarding to see they value this and want to make sure I’m equally compensated.
- I am not an agent
- if possible, I’d prefer more of compensation through equity in the deal, rather than a one time “service fee”, or margin through selling “turnkey”
- if equity is not an option, maybe because my partners rather own the home entirely, could i charge a flat rate for my services? If so, what is a reasonable amount?
I’m really grateful for the community at BP and look forward to hearing how you all have partnered with friends/family who were the money providers!!
Thanks in advance.