What is a typical deal structure with outside investors?

[Trevor J Dammon]

I've been listening to the BP podcast and a lot of the investors they interview talk about getting outside investors and using other people's money. I'm just curious how these deals typically are structured. Where do I, the person finding deals, benefit.

For simplicity sake let's say I finance a duplex using money from two investors (50/50) and none of my own money.  Would I just collect an annual fee or would I take a % of equity?

[Nicholas L.]

@Trevor J Dammon

I think what you're missing is the value add aspect.

Simple example: you could BRRRR a single family home by purchasing with borrowed private money. You pay the investors interest during the rehab portion, then refinance into a conventional or DSCR loan, and pay the investors back, paying the private loan off.

You now own a house, and the investors got a good return on their money.

That's just a simple example - as others stated there are tons of ways to do it.  But my point is there's usually a value add component.