Investor’s Cut for BRRR

[Brendon Kelley]

Hi!

I’m brand new and seeking some clarity on the process of having an investor.

So let’s say me and my partner find an investor who is willing to front the money in exchange of a share of the cash flow and equity. Would an 80/20 split be far if we are finding the deal, managing renovations (and doing some ourselves), and then acting as the property manager as well? 

Also, how does their 20% equity work in regards to BRRR? Let's say a house cost $25,000 and had $25,000 in reno. Then we refinance. What happens if we only get 45k? What happens if we get 60k cash back?

Lastly, what happens with monthly cash flow? Let’s say it rents for $1,000/mo. Do we just forfeit up $200/mo to him or do we get to take out expenses and then give the investor 20% of monthly profits? (After saving for capex, repairs, taxes, insurance, mortgage, etc). 

All guidance is greatly appreciated!