Building/Investing With A Partner

[Elliot Larkin]

Hi There,

I renovate, build and manage properties in a Florida college town. So far, my business has been limited to my family, as far as investors, and we have been successful doing renovations and more recently building from the ground up as rentals and flips. I have a few friends who are interested in investing capital into the projects and I don't have any experience with this. What is a reasonable return for an outside investor who is simply investing cash? Any recommendations on the structure of the partnership - I am looking for details. (I have been doing construction loans with banks at 5.5% 5 year fixed then adjusting each 5 years thereafter 20-25 year amortization. But even with the banks I have to put down 25% of the project cost, which is where the investor comes in.)

Responses greatly appreciated.