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Updated about 9 years ago on . Most recent reply
![Tyler Warne's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/451859/1726922430-avatar-tdwarne.jpg?twic=v1/output=image/crop=3024x3024@0x503/cover=128x128&v=2)
Looking for structure advice.
I am looking to invest with my father, he currently has 2 single family houses which are in his town. I have a 4-plex under contract and don't have the cash to purchase it on my own and I am curious how investors have split both the equity and the repayment.
I was thinking of me taking a 10% management fee and my father making a 13% rate of return on his down payment then splitting the equity 50/50. Does that sound OK from what others have done in the industry?
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![Justin Spaulding's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/282293/1621441388-avatar-justinspaulding.jpg?twic=v1/output=image/cover=128x128&v=2)
@Tyler Warne, you decide that! I have seen it done so many different ways. That's the cool thing of deal making. It depends what everyone is looking for. My last project I didn't have to put anything down, my investors put in $130,000 and that covered repairs and down payment. I sold them 50% of the shares. I kept 50% of the shares for being the manager and for bringing the deal to them and putting it together. I also get a monthly management fee of 8% revenue. Yes, my investors are taking a much lower return for not going out and doing a project themselves but they will take a 6% return on their real estate investments since it is not their go to thing....its better they have their money with me than in the bank at a 0% return. Best of luck man!