Structuring buy and hold venture with investor capital
BP Community: I need your help!
I've been approached by a new investor who wants me to help him find buy and hold multi fam (BRRRR in full effect!).
The question I have is:
Investor is fronting 100% of capital. I am sourcing and vetting the deal, and will manage the rehab, sourcing tenant, etc. what’s the optimal way to structure this?
Is it: consultation fee (ie. Charge $10k to set it up then walk away)?
Is it: profit sharing on rent: 70/30 on all rent and then any refinance, etc...
How would you structure this kind of deal, knowing I’m the “deal provider” and he’s the “cash provider”.
Do I LLC, JVA it S-Corp? I'm also actively flipping with investor money and have raised around $1.4M through a couple of LLC/JVA agreements.
Thank you!!