Updated over 5 years ago on . Most recent reply
500K cash deal investor willing to give me a cut 🤓
I'm 23. Never made a real estate deal, but I've been learning for the past 8 months.
I have a friend who basically wants to help me get onto my feet. He is willing to let me use up to 500K to find a good deal in OKC area.
He told me that he would give me 10-12% property management fee and after its paid off he would cut me into the rent revenue.
This man has more money than he has ever needed. I know this is more of just a help to me because he could use this money to go into more commercial real estate deals like he already has.
I don't want to let him down. I'll treat his money with sacredness as he has trusted me with part of his life's work.
I want to do the BRRR strategy but have never done it before. Any suggestions? Pitfalls to avoid? Snakes to be aware of?
Most Popular Reply
You need to figure out a structure for this...collecting a PM 'fee' requires a RE license in every state that I am aware of. So you'll need to set this up as a partnership where you own part of the deal or something similar...
Don't re-invent the wheel here. The simplest is likely for him to loan the money against a specific property secured by a note ect, and he gets paid off at refi.