I have to pay you? (Partnerships & Payment)

I have to pay you? (Partnerships & Payment)

Coldwater, MI · Member since 2016 · 9 posts · 1 vote

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?

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  • Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
    10y
    A standard property manager gets ten percent of the rent.Since she is also putting up 25% of the down payment I would give her 35% of the $10,000.00 which is $3500.00
  • Coldwater, MI · Member since 2016 · 9 posts · 1 vote
    10y

    Thank you @Brandon Battle , that was the exact type of answer I was looking for. Now if some others could chime in. 

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