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Updated about 15 years ago,
Silent Partner Rate of Return?
Hey all. Its been awhile since I have been on here.I lost my job and about lost it all trying to start my real estate business but now Im back and ready.I have a silent partner that is going to invest $50,000 in my real estate company. He has given me 5 years to pay him back and is interested in splitting the equity on my properties at this time. What would be a common return for this type of deal. I have never done this type of thing and want to be fair to both parties since he is fronting the cash while I do all the work. Does a 50/50 deal sound good for a 60/40? Just wanted to see what others have done in the past. As always thanks