How to create Win win deal in equity partnership

[Sachin Bhat]

Hello everyone,

I am BRRRR Investor in Indy market. The seasoning period got me dry on cash (downpayment). I am looking for cash (equity) partner who will be a silent partner in my deals. I will be using the cash for down payment on purchase and some for repairs. I wanted know your expert advice on how to structure the deal so it's a win win for both of us.

I will be buying rehab properties and doing A to Z work on my own. Finding deals, finding, hiring, managing contractors, marketing, renting etc my partner will be just put the down payment and repairs costs. I will be using the funds only for 6 months. Then return it back to them. What are some of the way have you structured this time of deal situations? Thanks in advance.

[Dustin Mathenia]

@Sachin Bhat

You bring him a deal. Explain what kind of returns there will be ask him if he would want to partner. He will want 50% for doing nothing. They always do. That's when you tell him you can get hard money for 12% and 3 points. Ask him of he can think of a way to structure the deal where you can both win. It is different when it's an investor with 200k to lend compared to 2 million too. It might be worth doing a 50/50 split if you can go from 2 deals a year to 10 it would be well worth it.