Splitting Profits on BRRRR

[Rich Ortega]

Sorry in advance if this isn’t the right category. I suck at picking them.

My question is about splitting profits on a BRRR. My partner will be putting up the money to purchase a rehab. I will be doing the leg work. After we refi should there be a split in the equity that comes out or from the rental income or both?

[Trevor Scheiderer]

Hey Rich,

This is really up to you and the other partner. If they value the appreciation amount more than the rental income, they may want higher equity percentage, which would give you a higher percentage of cash flow. If they value the rental income more, it would be the opposite. In hindsight, it comes down to what each of you value and what you can come to in terms of agreements. Good luck and happy investing!

Trevor Scheiederer