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Updated almost 3 years ago,
Structuring BRRRR deals
Hello everyone. I'm having trouble with how I should structure some partnerships.
So, I have 2 private "friends and family" investors who I plan on using for down payments, or acquisition of wholesale deals.
Then for renovation I plan on using private lenders to fund the renovations to then refinance after using value add strategies.
However, after the cash out refinance.
How do I pay back my "friends and family" investors?
I know with the new loan I will pay back the private lender, then whatever left over I plan to pay the "family and friends" investors their down payment, plus interest.
I don't mind not making any more from the cash out refinance. As long as the investors make money from the deal.
So how much should I look to give them back for a payout percentage wise?