Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Buying & Selling Real Estate
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 about 4 years ago on . Most recent reply

User Stats

35
Posts
199
Votes
Andy V.
  • Investor
  • Austin & San Antonio, TX
199
Votes |
35
Posts

I found private investors, how do I split profits?

Andy V.
  • Investor
  • Austin & San Antonio, TX
Posted

I am a real estate agent in Austin/San Antonio market that is witnessing how these two markets are some of the hottest IN THE COUNTRY right now. I am looking to purchase my own rental properties in these markets and a few flips for which I have found investors who are showing interest in funding some of the transactions. 

1) My question is - how do you recommend I split profits with these private investors? Here's the likely situation: 

My Contribution: 

Find the Deal/Property, Run the Numbers, Present to Investors, Oversee and manage my existing & reliable contractor, master electrician, plumber, lender etc. to perform the work and rehabs, and refinance. 

Investor's Contribution: Provide the Ca$H

2) Is there a "standard" rate or percentage from profits they would earn? How do you make your decision? 

3) How does this change if instead of me buying the property under my name, the investor wants to buy for themselves and continue to build their own portfolio? 

What questions am I forgetting to ask? 

Thanks in advance everyone :) 

Loading replies...