Best ways to legally arrange a relationship with your investor

[Rob Ko]

Hey guys, I have an investor who is willing to invest some money into my projects. I would provide a down payment and bring the deal and he would finance the rest via morgage. 

What would are the ways how we could legally arrange this? Create a LLC or ...

Also, those of you who already went through similar situation what is usual split. 50:50? 

I would greatly appreciate your input and your experiences. 

Thank you very much!!!

[Steve Vaughan]

Originally posted by @Rob Ko:

Hey guys, I have an investor who is willing to invest some money into my projects. I would provide a down payment and bring the deal and he would finance the rest via morgage. 

What would are the ways how we could legally arrange this? Create a LLC or ...

Also, those of you who already went through similar situation what is usual split. 50:50? 

I would greatly appreciate your input and your experiences. 

Thank you very much!!!

 Rob, when i do this, my lender is just a lender.  They get a note and deed of trust. But he is older and wants to remain passive. He has no interest in ownership anymore.

It really depends on whether your person wants to be a partner or just earn interest. If a partner, I'd probably just own it as TIC, tenants in common, with % listed. Then have a JV agreement. A straight lender is easier. Good luck!