Understanding the Private investor side

[Daniel Torres]

Hello everyone,

My name is Daniel, and I recently left my job as a fraud analyst at a financial institution in March to pursue a real estate investment journey with my wife. In my previous role, I encountered numerous instances of real estate fraud, which opened my eyes to the importance of legitimacy and trust in this industry.

After months of studying the markets and educating ourselves on the BRRRR method, we are thrilled to have potentially found our first deal, along with other promising prospects. We are now at the stage where we are looking to partner with private investors and would greatly appreciate your insights.

We have several questions about what private investors typically expect when they partner with a new real estate venture:

1. Return on Investment (ROI):

• What do private investors generally receive in return for their investment?

• Are they typically given a percentage of the cash flow along with interest on their initial contribution? If so, what is a common percentage range?

• Is the cash flow percentage indefinite, or does it have a defined period?

2. Equity and Ownership:

• I have read that private investors can be added to the deed. How does this process work, and what does it entail?

• What are the pros and cons of adding an investor to the deed?

• How does equity sharing typically work in these partnerships?

We are still relatively new to this journey but have already gained a wealth of knowledge from other real estate investors. The community has been incredibly supportive, and we are excited to continue learning and growing.

I recently joined BP, and I am hopeful this will be the beginning of something great. Thank you in advance for your guidance and support.