Splitting rental property with private capital investor

[Alex Ferguson]

Hey everyone, new to BP and Brandon has fully convinced me into purchasing multifamily investment property. I'm working my first deal (woo hoo!) with a private capital investor on a small duplex. My partner is investing in the cost of the property $140k as a silent partner and I will be managing the property. We are collectively purchasing under a newly formed LLC. How do we split profits?

[Michael Peters]

I'm currently working on a deal and have agreed to 25% of equity and cashflow for my leg work.  Once I more substantial track record I'll move to 1/3 and eventually 1/2.  I think it all depends on the investor your working with, the returns, and what they are comfortable with.

If you're only making an 8% return on the 140k they might only be willing to split it 72/25 to fund the deal.  If your returning 20% 50/50 isn't a bad deal.  It all depends on the circumstances.