All Forum Posts by: Austin Alvarado

Hey man I'm just north of you in Fort Collins and own 2 duplex's here in Colorado from house hacking. Purchased my first one at 21 and would love to connect and let you know how I did it in a similar market. 

Thank you all for the helpful advice we have decided to go with a 45/55 split and evenly distribute cash flow 50/50. The equity will be split 60/40 after completion of the ADU.

If you could make the numbers work with just a hard money loan and use the HELOC as your safety net that would be the best approach for you.

Hopefully your first property will open up some cash flow for you once the renovations are complete and get a little more in rental income.

Hey everyone,

 I’m putting together a real estate partnership and would really appreciate some input on how to structure it fairly.

Here’s the situation:

• We’re looking at purchasing a duplex that I will be claiming as a primary residence and moving into.
• Both myself and my business partner would be contributing 50% of the down payment.
• My partner would be strictly a passive investor — no involvement in sourcing, remodeling, or managing the property.
• I’m the active partner — I found the deal, will be handling the entire remodel after closing, and will also take on full responsibility for managing the property: tenants, maintenance, bookkeeping, etc.
• My Partnership Idea:

• Ownership Split: 60% to me (active partner), 40% to the investor
• Management Fee: I would receive a 10% fee on gross rental income for handling all ongoing property management responsibilities
• Both of us would split the down payment 50/50

I believe this structure is fair since I’m putting in both capital and all the time, labor, and risk especially with the remodel up front.

Do you think this is a fair and clean way to structure the deal? Has anyone done something similar, and are there any pitfalls I should be aware. (I also will be the GC on an ADU addition after a my 12 months is up living in the property.)