fair equity for holding mortgage

[Drew Miller]

Hi Everybody,

Appreciate all the advice in advance!

I just had a question concerning the proper split of equity. I currently have 3 houses that my brothers I have purchased under personal mortgages and currently have renters in them. Houses are cash positive due to larger down payment. (25%) each and good rental market. Houses were $140,000- $170,000 each and rent for $1600 a month.

Also each house has been appraised for approximately $25,000-$50,000 more than we purchased them 2 years ago.

We have identified several new areas and are looking to buy several new properties, but we need more money/credit to be able to purchase the amount we want.(4 more)

We do have an uncle that has showed interest in investing with us. He's not interested in just giving us a loan, but more so in being a partner. Were planning on setting up a separate LLC and outlining terms legalling for everything.

Which would mean that we could purchase other properties using his credit.

If we would buy 4 more houses, three of the mortgages would be under our names and 1 would be under his, but he would be providing the down payment for three of the houses and splitting the repairs.

We'd be doing all leg work on the ground. Choosing the houses, the renovations, and renting them, him being a silent partner.

Were trying to figure out what would be a fair equity split or something that would be reasonable for both parties.

Thanks.