Silent money partner

[Blaine Kosek]

I have a potential opportunity with a partner who wants to just be the money side of the transaction and I will take on all the other responsibilities.

I have heard Brandon talk about this in some of the podcasts but I am wondering how the payout works.

If we buy and I rehab, and find renters and property manage - we split 50-50?

When we decide to sell or refinance is that also 50-50? Would the partner get the initial investment first and then 50-50 of the proceeds?

Just wondering how others have laid this out.

Thanks in advance

Blaine

[Kyle J.]

Why not just have him truly be a silent money partner and loan you the money simply as a debt investor for fixed rate of return instead of trying to figure out a fair equity split and who does what? Would be a lot cleaner if he just loaned you the money at 10% (or whatever you guys agree to) and then you pay that to him no matter what, and then you own the property and are responsible for everything that needs to be done with it.