Silent Partner on an Owner Occupy Deal
Good day! I have a silent partner on the following deal:
I am under contract for a $489,000 purchase price on a complete gut rehab ($289,000 purchase + $200,000 renovation). I have a Silent partner that will bring $14,000 to the closing while I will bring $6,000 to the closing for a total of $20,000 in closing costs. The Silent partner suggests that it is structured as such: $14,000 + 30% Interest ( ROI $18,200) as well as 50% equity. As of now, the ARV has not come back yet. The Silent partner doesn't mind waiting at least 10 years for the equity (I wouldn't mind either giving the area that the property is located.) While I don't mind giving some equity (50% is rather steep), I would rather a much shorter term e.g. 1-5 years.
The question I have is:
How could this deal be structured where it's fair for the both us?