A few questions about private money.

[Philip LaRoche]

Hello everyone,

First things first, I am very new at this and I have never used other people's money for anything in the past. I have one investment property that is working well. That being said I have a business partner (other businesses)that is looking to invest with me in some RE.

He has been trying for some time to get this movingand I have been reluctant until I became more knowledgeable on processes. I have been reading many posts and how to's on the subject and I am now ready to dive in with his money an my sweat.

As I have read in the private money area the percentage breakdown can be pretty wide. That being said, I have not come across anyone who identifies a fair split or what can be considered to be an industry average. Is there an identified industry average for this type of activity?

The monies between he and I would be aloan to purchase a property that would be rehabbed and rented for 2-4 years. Depending on the market at that time the home would be either sold or continue as a rental.

The rental income would be collected monthly and held for a yearly distribution. That is our set up for the deal. I am looking to see what you think is a good split for the profits? He is fronting 100% of the purchase and rehab cost. I am handy and a good project manager to handle the rehab in addition I will also manage the properties purchased.

He is looking for me to do everything in the deal find it, calculate the costs and determine if it is good, then handle the rehab. He simply wants to invest his money and let me handle the rest.

Any advice would be very welcome and appreciated. I don't want to under value my part in the deal, but I also don't want to insult my partner.

Thanks in advance.

Phil LaRoche.