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Updated over 5 years ago,
Active Manager - how to get paid?
I am looking at buying a rental property in New Jersey. I have found it, done the analysis, and determined that it is a sound investment property and ready to purchase. I have a funding partner who is putting all of the money up. It is a single family home so we are getting a mortgage and only need $50k up front. The funding partner is taking care of that and the operating income will pay the mortgage. With the funding partner putting up money for the entire investment, how should I, the active manager that performed the analysis and found the property, get paid? Do I go 50/50, maybe lower, charge a transaction fee, or charge a commission? I am hiring a property manager as well so it's not like I am extremely active either, I just found the property and am taking care of the whole buying process and overseeing the property manager.