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Updated over 7 years ago,

User Stats

238
Posts
185
Votes
Tyler Hodgson
  • Investor
  • Lewisville, TX
185
Votes |
238
Posts

How Much Equity / Profit Sharing Would You Require?

Tyler Hodgson
  • Investor
  • Lewisville, TX
Posted

If you had outside investors who would supply 100% of the capital needed for the down payments on some rental properties but you had to take out the mortgage in your name and title would be in your name, how much of the net profit would you require to take the risk be involved in the deal? Assuming of course there are some legal agreements behind this that protect both parties. Would you want a 50/50 split on all profits (net income and proceeds from sale or equity cash-out) or does one side deserve more of the profits than another.

Just curious to get some other opinions on this. Thanks!

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