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Updated over 7 years ago,

User Stats

1
Posts
1
Votes
Ben B.
  • edmonton, Alberta
1
Votes |
1
Posts

Silent Partnership Structure

Ben B.
  • edmonton, Alberta
Posted

Structure:

50/50 Ownership of new rental property

Partner A: Qualifies for financing and puts down the 20% required down payment. Gets 10% return on his 20% down-payment year after year..

Partner B: Finds deal and does all the work to oversee coordination of financing, managing the leasing of the property; Does not contribute to downpayment

Question: Do you think is it reasonable or fair to structure a real estate rental purchase where a silent partner is responsible for the entire down payment as long as they get a 10% return on their downpayment OR, should the silent partner also be repaid that 20% downpayment on top of their 10% return (like a pref return on their 20% down payment)?

I understand partnership structure can be done any way and there is no one way to do it, but I wanted to see if anyone else thought the above was reasonable.

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