partnership deal how to structure
Hi, I am thinking about taking a partner on my single family flip which I am closing in a few weeks.
I would be doing everything on flip, purchase, rehab and selling. The only thing the partner will bring is the down money which is 20k and possibly the 1st phase of rehab which is 10k.
I am under contract and set to close on 2 other properties which are multifamily apartments which I plan to hold, but they also require 20% down. So my cash on hand is cutting it close to do all 3 would leave me with very little reserve.
Question is what would be a fair split for partner? I was thinking around 15% interest and a % of the profits when home sells maybe between 10%-20% . projected profit on flip is $42,000. They would get the 15% interest on money, at worst case if I just refi the single and rent it. If anyone has done any deals like this please let me know, how it was structured. Thanks