Deal Structure for Short Term Rental Acquisition
Hi Guys, working on building a portfolio of short term rentals. I have a few people who are interested in investing. The thought is to borrow as a loan for downpayment and start up costs. How would you structure the deal?
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Originally posted by @Andria Kobylinski:Hi Guys, working on building a portfolio of short term rentals. I have a few people who are interested in investing. The thought is to borrow as a loan for downpayment and start up costs. How would you structure the deal?
Borrowing the money is not going to create a partnership. You are only giving the lender investor interest return. They don't participate in the profit or appreciation.
If they are expecting profit and appreciation, they need to come in a partner. They can bring all the money but they need to come in as a partner.
@Ashish Acharya Thank you for the response.Yes, he is happy to structure it as a loan. I am just curious what would constitute a win/ win deal for him and I. I think he'd like to be paid back quicker over a long term lend. What percentage do you think is reasonable in this market. What length of time?
Hey @Andria Kobylinski would you mind letting me know how you structured it? I'm in a similar situation where I'm looking for a capital partner for and str but want to see the different ways of structuring it.