BRRRR Partnership Calculator

[Corey Schneider]

Hi all - I'm looking to BRRR a property and am exploring different partnership structures, including variable funding structures (ex: I put down 40%, partner(s) put down 60%, we own 50/50) - is there a good calculator that models returns at the GP level, LP level, and total project level? I like everything about Bigger Pockets BRRR calculator, but it doesn't allow for different inputs with inequitable partnership contributions/ownership.

[Jake Baker]

@Corey Schneider

We fund with a combination of Hard Money and Private Money. Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule. Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. Of course, with private lenders, you will need to give up equity or a return on the debt.

Another option - Preferred Returns. Before you split the profits 50/50. If I am the contractor I get my % of rehab costs. If I am the agent I get my commission. The investor(s) get a 5-9% preferred annualized return on their money.