Advice from created partner relationships.

[Daniel Johnson]

My goal in real estate is to purchase, rehab and sell in order to use profits for purchase, rehab and hold.  However, like probably most, financial is proving to be problematic.

I would love to structure a partnership deal where the financier took their profits from the profits of the project rather than in the form of an interest rate.

Can someone who has worked this type of agreement tell me about their experiences.  Is it possible to find this setup?  How did you find your partner?  What pitfalls do I need to look out for?  Etc.

[Jon Holdman]

Yes, its possible.  Sometimes called a "money partner".  Typical split seems to be 50/50.   You find the deal and do all the work, partner provides all the money, profits split 50/50.   This usually works out to be more expensive than just doing a hard money loan.  But might let you do a fix and flip with less of your own cash.