Hello everyone Who makes you flips and puts investors, what models of partnership and profit sharing ...

US or Israel - Where to invest?

Hello everyone
Which of you does flips and puts investors in, what are the models of partnering and sharing profits with investors?

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  • 50:50 If the investor puts all the money there and I'm just in the entrepreneur's hat. If I put money into the deal the percentages vary… Suppose I bought the property myself and the investor I brought in only at the renovation stage so the division changed to 80:20
    * Only Example *
  • Usually if the investor brings all the money then 50 50.
    Sometimes I also enter a certain percentage, so depending on the percentage the investor puts in the division is 50 50
  • And what do you do if there is a loss? How to divide the loss?
  • Are the percentages reflected in the ownership percentage of the LLC or the ownership of the property? Or only in an agreement between the partners, and the property is registered with the full ownership of one of the parties?
  • Idan Assis
  • Hey. The distribution of profits and losses is flexible and in fact a function of the nature of the transaction. The more attractive it can leverage it to favorable conditions in your favor and the less you have to offer the more to the investor to make it worthwhile. If you wish I can send you a sample agreement that I have worked with on several occasions in the past. And do not forget other things in the agreement that are beyond the money !!! Not less important.
  • Sorry to burst into the post, but the division of 50: 50 Did you do the same in your first and second deals?
  • 50:50 This is the classic division, but in fact any relationship that works for both parties - good!
    If this is the first flip of the entrepreneur then it is strongly recommended to include an experienced entrepreneur in the transaction or alternatively receive an escort from him throughout the process, while improving the ratio in favor of the investor because he takes a higher risk than he or the entrepreneur know
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Responses

  1. Hey. The distribution of profits and losses is flexible and in fact a function of the nature of the transaction. The more attractive it can leverage it to favorable conditions in your favor and the less you have to offer the more to the investor to make it worthwhile. If you wish I can send you a sample agreement that I have worked with on several occasions in the past. And do not forget other things in the agreement that are beyond the money !!! Not less important.

  2. 50:50 If the investor puts all the money there and I'm just in the entrepreneur's hat. If I put money into the deal the percentages vary… Suppose I bought the property myself and the investor I brought in only at the renovation stage so the division changed to 80:20
    * Only Example *