Hello everyone Who makes you flips and puts investors, what models of partnership and profit sharing ...
Tagged: Investors, United States Real Estate Forum, Flip, Flips
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Hello everyone Who makes you flips and puts investors, what models of partnership and profit sharing ...
Real estate and interest updated 2 years, 10 months ago Members 2 · 8 Posts
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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?
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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?
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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.
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Sorry to burst into the post, but the division of 50: 50 Did you do the same in your first and second deals?
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Hello everyone Who among you does flips and brings in investors, what are the models of partnership and profit sharing with investors?
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