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Updated almost 4 years ago, 02/20/2021

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 :) 

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