Deal structure between GC & 100% cash Passive Investor

[Janet Beaver]

Hi, guys 

I'm new to biggerpockets and I need help structuring a deal

My husband and I own a GC/CM company . We have a Passive Investor who is interested in loaning us 100% cash for some of our deals. He is not interested in getting anything in his name :Partnership, a mortgage or lien on the properties . He wants to just put in money and get a return .The deals will either be buying land and we build new or renovating houses and selling them . We will be the GC to build or renovate and would be getting paid for our work . We have a separate LLC setup from our GC company that would get a loan from the investor and employ our GC company to do the work. We have an opportunity for him to keep investing in our deals if we can get the first one structured fairly for us and him. Does anyone know how best to structure deals win such situations?

Thank you for reading this and your help will be greatly appreciated

Janet

[Gary Harris]

HI 

@Janet Beaver

I would simply do a JV agreement per house. The JV agreement will state passive investor is putting up X dollars for the acquisition and rehab/build. Your company will purchase 123 Main Street and will be responsible for hiring GC (your other company) to do the work. When the property sells you will split profits however you decide, whether it be a flat percentage on money provided or 50% / 50% on whatever's left after investor has been paid back initial funds.

Also...count your blessings as you are very lucky to have this person(s).  If they want to fund anything in NJ I have deals waiting!

Gary