Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 9 years ago,
I have to pay you? (Partnerships & Payment)
So the title may be a little misleading. I understand both people must get paid or there would be no incentive. But how do they get paid?
The question... How have you structured partnerships in the past for rental properties or flips? For a hypothetical, we will use the following example.
John doe mentions to Jane Doe (no relation) that there is a local property for $100,000 with a yearly net profit of 10,000. If John Doe puts up $15,000 for down payment and Jane puts $5,000 but intends to manage the property while john is a silent partner. How would you structure the deal? Assuming that every year indefinitely the same return can be expected.
Also, what happens if one day Jane wants the own the property entirely?