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Author Topic: Proper Structure for Investor / Rehab Project  (Read 1461 times)

Offline GRIDcorp

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Proper Structure for Investor / Rehab Project
« on: January 23, 2011, 07:29:31 pm »
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.

1. What is the proper way to structure this deal?

2. What is a proper split for properties under $100k

Is there anything I should be asking my potential investors?

Thanks

Offline BLL

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Re: Proper Structure for Investor / Rehab Project
« Reply #1 on: January 23, 2011, 08:54:47 pm »
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.

1. What is the proper way to structure this deal?
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.


2. What is a proper split for properties under $100k
Whatever the two of you agree upon. I would base it upon how much each brings to the transaction.


Is there anything I should be asking my potential investors?
His timeline for cashing out.
His long term plans and goals.
How much say he wants in the investment decisions.

Offline GRIDcorp

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Re: Proper Structure for Investor / Rehab Project
« Reply #2 on: January 23, 2011, 09:58:01 pm »
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.

 




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