Updated almost 5 years ago on . Most recent reply
Fair equity split for a local landlord?
Hi all,
As a remote investor I've decided I do not want to use property management companies. I would rather do one of two scenarios:
1. I find the deal and bring half the down payment. A local partner brings the other half and manages the rental
2. I find the deal and bring the entire down payment. The local partner manages and applies for the residential loan (on a 2-4 unit MFH).
Are these situations roughly even in terms of contribution? Or would you say one partner should get more than 50%? I am looking for general guidance on how to determine a fair split; this information seems hard to come across frankly.