After clearing some obstacles of late I find myself in need of an investor as a partner. I will handle all aspects of the rehab, property location, and everything else. Here are my questions.
What is the proper way to structure this deal?
What is a proper split for properties under $100k
Is there anything I should be asking my potential investors?
Thanks
What does the partner bring to the table. If it’s just money, I would structure it more like a loan so that you maintain control. If he brings skills, experience, or contacts that you lack, some kind of limited liability entity is needed to shield you from his actions. Otherwise, the default is a general partnership and you would be personally liable for any partnership debt.
Whatever the two of you agree upon. I would base it upon how much each brings to the transaction.
His timeline for cashing out.
His long term plans and goals.
How much say he wants in the investment decisions.
Thank you for the reply. I currently have a few deals in the pipeline and as soon as I find an investor to work with I’ll be back with more details.