how would you structure the deal if you're the cash investor

[Ruben Aguirre]

Hi everyone, I've been MIA for a few years after getting burned out by and going broke in real estate land development. I'm getting back in the game, but this time investing in SFH as my main focus. I'm starting to have initial conversations with serious cash investors, but I'm not sure how to structure the deals.

I could use some help with two different topics: ownership percentages, and ownership/agreement structure.

1. If you were the passive investor contributing all the cash, how much of the deal would you want? If I were the money guy, I wouldn't do anything less than 50/50 unless you had a very strong case as to why I should not get at least that. Your thoughts are appreciated on this. If you would rather structure it as a HML, why would you prefer that?

2. How would you protect your interests? Would the house get bought by an LLC that we both own, and then you would place a lien on the house with your name on it, and only disburse funds for repairs with a detailed draw sheet, similar to a conventional construction lender?

Your all's input is greatly appreciated. It's encouraging to come back to a vibrant community at biggerpockets :)