Nonetheless, you numbers above would look like this:$55,000 - Purchase price, including $5K closing costs$30,000 - Down payment$25,000 - 1st Loan$100,000 - 2nd Loan - Not sure how you structure your financing, but I'm assuming this money is borrowed as well.$125,000 - Total debt on the property$200,000 - Sales price$12,000 - Commissions$188,000 - Sale Proceeds$63,000 - Check from closing ($188k, less the $125k debt)$33,000 - Profit ($63k, less your initial $30k down payment)

This could be an LLC jointly owned by the contributors or a Joint Venture agreement, but you'll be thankful for this structuring 5-15 years from now.If you are using OPM to take down a property and you'll be cashing them out, then you don't need a structure like this necessarily -- a promissory note and related instruments can be used and then once the cash-out happens they are paid off and released and you own it pure and simply.

Hello. I am just starting out and looking for partners. Can any one recommend a proper equity split in the below scenarios:
Scenario 1:
Partner 1 is a season real estate investor that has done several flips, BRRRRs,...

This is a 2 story structure with a total of 4,323 sf but only 1,983 sf foot print.

There are a variety of structures you can use depending on how many investors and their role in the deal.

Person D and I have been making plans for a few months to partner on a project under this structure.

How do you normally structure an owner financing deal?

You can rent these books from your local library and they are very helpful:Form Your Own Limited Liability Companyhttps://store.nolo.com/product...Your Limited Liability Companyhttps://store.nolo.com/product...Also, here is the info on doing it in the state of Alabama:https://www.sos.alabama.gov/bu...Typically if the structure of your LLC is relatively simple (only 1-3 members) and no special agreements, it should be pretty straight forward to get it going.

I did get a quote from Geico for $697/year, which includes structure, liability, and loss of rents up to $8,000.

Hey @Matthew Leal, the way I would structure this if it were a flip, with me being the "boots on the ground" and my partner being the money, is that the money investor just puts up the money.