Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago,

User Stats

226
Posts
53
Votes
Miles Stanley
Pro Member
  • Realtor
  • Schertz, TX
53
Votes |
226
Posts

I plan to be a silent partner - typical/best arrangement?

Miles Stanley
Pro Member
  • Realtor
  • Schertz, TX
Posted

Hi all,

i am considering investing in a small startup as a silent partner (on the order of $30k-$50k).  

My question is, as a silent partner is it reasonable to expect a perpetual return as part of my involvement in the startup/beginning phase?  In other words, once i have made back my investment plus a return on investment...does a typical silent partnership end or could i continue to receive a share of company profits "perpetually"?

Obviously an arrangement like that would be ideal, but it seems once my money is made back, my usefulness as an investor would be spent and I'm having trouble seeing why the business would want to keep me as an equity partner (why would they?).  i have no interest in trying to interfere with the day to day, i just want the passive income.

i can elaborate as the comments dictate, but i wanted to keep it vague to get the conversation rolling.

Also, never invested as a silent partner so forgive me if my post isn't perfectly phrased, still trying to figure out the questions to ask here.

Thanks

  • Miles Stanley
  • [email protected]
  • (210) 279-5133
  • Loading replies...