Initial investment question

[Erik Schilling]

Hey guys,

My buddy and I are about to start flipping some properties. He is a GC and would be doing/ subbing the work. My question is what would be a good split for investment and ROI? I would be covering more / all of the down payment, while he would be buying materials and covering labor costs. I was thinking about a few different scenarios.

After house is ready to sell, what are some good ROI options for me?

Initial investment paid back + ROI% + % of profits?

Initial investment paid back + % of profits?

Initial investment paid back + ROI%?

Initial investment paid back + flat rate?

Depending on the scenario, I could make more on some properties and he could make more on others (while I get my payback too).

My idea behind this is that I have more cash into the property, but he would pay for materials and labor, so we would both have a decent stake in the investment.  I will have more hard cash into the property.

Any suggestions would be greatly appreciated.

Thanks!