Fair Percentage for a Silent Non-Recourse Financing Co-Signer?

[Eric M.]

I browsed around a bit but didn't see anything exactly on point, so thoughts welcome.

I am working with a family member, with whom I own a separate property. We will have an LLC. I will be doing ALL of the work, from finding properties, contracting, legal, managing, etc. I also provide 50% of financing.

Family member is a "silent partner." Effectively, he will serve as a co-signer on non-recourse financing. (For example, we intend to apply for a HELOC secured by our jointly owned property). Other than serving as a co-applicant for certain financing, my family member will have no other role.

Question: What percentage of the TOTAL business (profits, eventual equity, etc.) is fair for the family member given this scenario? Stated differently, what percentage of the LLC should he own?

Really appreciate thoughts!

[Jean Bolger]

I think the reason you're not getting more response is because your question is really hard to make sense of. I have never heard of a non-recourse heloc, despite what the oracle google says ;) and the very concept seems bizarre to me. The idea of having a co-signer on a heloc also seems really strange.

Perhaps you can step back and re-phrase your explanation what you are trying to do -- for instance, who's house is the heloc on?