@Shakur Granger I completely disagree that 80% LTV only works when the rehab it tight and ARV is rock solid...value-add investing in general ONLY works when you do it right (correct budget/ARV) regardless of if its 70% or 80% LTV.

live in Round Rock, TX (just north of Austin).

But Joe Splitrock, Jim K.,  Nathan G. and many others have recently disappeared.  

I'm not sure why he has say on the split when your the flipper?

I am sure your construction costs are lower in Little Rock Arkansas than in Philadelphia which explains why you can build at the cost basis mentioned in your post but unless the property is located in an irreplicable location I would urge investors looking to build ground up to seek better margins than building to 87% of the completed value.

And Airbnb is not allowing anyone to move back to the split fee, so that's not an option. 

Initially we were planning to set it up as a simple equity split, but he has some concerns on how to structure the agreement to make sure he gets his initial investment back.

@Michael Ewers Little Rock had a destructive tornado in March 2023 that destroyed a large area.

Rock road at the bottom and left.  

Would love to discuss the kinds of profit splits and preferred returns that work for you.