Sorry in advance if this isn’t the right category. I suck at picking them.
My question is about splitting profits on a BRRR. My partner will be putting up the money to purchase a rehab. I will be doing the leg work. After we refi should there be a split in the equity that comes out or from the rental income or both?
This is really up to you and the other partner. If they value the appreciation amount more than the rental income, they may want higher equity percentage, which would give you a higher percentage of cash flow. If they value the rental income more, it would be the opposite. In hindsight, it comes down to what each of you value and what you can come to in terms of agreements. Good luck and happy investing!
not sure why anyone would do this too small of a pie to cut up.. max debt minimal cash flow.. I can see it for the investor who owns controls 100% investor in my mind would be better investing in syndication or crowd funding.
Whatever you negotiate.
Curious, how many BRRRRs have you done, how much funding was required, and what was the net profit (1st year total net positive cash flow or profit from sale) after all expenses & debt service?