Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago,

User Stats

3
Posts
0
Votes

What is fair distribution of a profit from a flip deal.

Posted

Hello everyone! Working on my first fix and flip deal with a partner. He brought a deal (through his contractor). I brought an investor who finances the cash we need for downpayment/closing cost (at a low rate of 8% only, no points). I also found a hard money lender who will finance the rest what we need (i understand it's not that hard to find though). 

How would you distribute the profit between 2 partners after we sell the property and pay off our passive investors? 

My partner proposing 90% of the profit to him and 10% to me with both of us putting zero own money in the deal and only using my investor plus hard money.

Or if we borrow less from hard money lender, keep my investor in the game, but I put $20k and my partner put $100k. He is proposing 20% to me and 80% to him. 

I'm not greedy but I want to learn how to play fair in that kind of a deal. I feel me bringing an investor at a lower rate has more value than 10%. 

All your opinions will be appreciated! 

Kat.  

Loading replies...