All Forum Posts by: Matt Jankowski

If the partnership pays the mortgage, what do you think the fair split is?

Then the money partner is bringing 25% of the purchase price to the deal + credit/income/personal guarantee for the loan at purchase.

@Jon Holdman thanks for the helpful answer. I was looking to talk about the partnership rather than deal analysis, but since you offered useful feedback....

The property is already rehabbed and leased. No rehab on the front end. The holding period is necessary for current infrastructure and community capex to be completed. My confidence in those projects is extremely high, and the payoff substantial. It's a slow motion flip. Cash flow is not the primary source of profits, but makes an extended hold more palatable.

If the sale proceeds are $120,000 (and cash flow has priorly been distributed evenly), the money partner would receive $85,000? ($50k invested plus 1/2 of profits) He would receive his entire investment back plus 1/2 of the profit. Is that the right way to do it?

I'm trying to figure out what a "fair" or at least typical split would be for the following deal:

Money partner brings money and guarantees the loan.

Managing partner does 100% of everything else. Creates, negotiates, analyzes the deal, manages the property and tenants during holding period, manages the (minor) rehab prior to sale, serves as the listing broker and markets the property for sale.

Basics with example numbers:

Money partner funds $50,000 cash into the deal for 25% downpayment, conventional loan.

Property is already leased. 3 yr holding period. $20,000 total cash flow over 3 years, $70,000 profit on sale.

So, we have $90,000 in gains ($120,000 proceeds received at closing).

What should the split be for cash flow, and total profits/sales proceeds?

Thanks!

Looking for a recommendation for someone that can draft/review agreements and handle closings in TX. Thanks!

I have HAR MLS access, and I wouldn't mind pulling a few quick comps.

PM me, if you like.

I won't list a house without professional pics. The photos are THE most important part of the listing. I pay $85-$150, depending on the size of the property. This includes shooting, retouching, and digital deliverables.

If you are good, I'm sure you can charge $200+. If you've got video chops look into that, too. I think the going rate for walkthrough videos is $300-$500.

What state? Laws governing child labor differ from state to state.

I'm not accustomed to having hot women hand me money.

I think you're on to something.

I think any rational person would just prefer to buy beautiful, pristine homes for pennies on the dollar if given the choice.

Unfortunately, that scenario rarely exists.

Many of us create a great deal of our value by remediating "ugliness".

When I've looked at this before, the major obstacle has been management fees. If it's a nightly rental in a resort area, you're going to need full service prop management with a check-in desk, on site maint, housekeeping, etc. If I recall, those companies take as much as 50%.

Is there a better way to do it?