HELP with Creative Deal Structuring!

[Bevla Reeves]

Hi BP!

I need some advice on creative deal structuring!

I have an opportunity to JV with 3 other investors and I want to know how best to spread the risk and reward, fairly, while securing everyone's stake by the real estate.

We’re looking at a potential deal that looks like this:

ARV: $400k-$425k

MOA: $165k

RB: $160k

Target net profit: $75k

Construction time: 6 months

Investor #1 has the acquisition funds.

Investor #2 has the repair funds.

Investor #3 is the General Contractor.

Investor #4 (me) is the Project Manager & Listing Agent.

If the GC and I waive our fees in exchange for an equal percentage of the net profit will that be fair?

Will it be fair to split the profit 4 ways?

Would we form an LLC as a group and give it a lien position against the property for security?

Is there a better way to work this out so that the GC and I both have skin in the game without cash upfront?

I’m very grateful for your help, thank you!!!!! ;)