Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. 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.
Investor Mindset
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 8 years ago on . Most recent reply

User Stats

243
Posts
108
Votes
Moshe H.
  • Rental Property Investor
  • Ramapo, NY
108
Votes |
243
Posts

Fair deal?

Moshe H.
  • Rental Property Investor
  • Ramapo, NY
Posted

I am just starting out and I'm thinking of investing in a property with a friend's private money. I kind of pitched the idea to him to see what he would think. I proposed we split the down payment and closing costs 50/50 in exchange for a 50% stake each in the equity. Since I would be doing all the work and he would just be providing money, I suggested we split the cash flow 25/75.

Now I'm wondering if that sounds fair or if I'm being too greedy? I guess partners can decide whatever they want between themselves, but is there a such thing as "typical" here?

Most Popular Reply

User Stats

133
Posts
54
Votes
Jay Dean
  • Investor
  • Manvel, TX
54
Votes |
133
Posts
Jay Dean
  • Investor
  • Manvel, TX
Replied

Why wouldn't you just get him to loan you the money at a set rate of return? Rate of return and safety of the investment are what will matter to him. You need to retain control of the deal if you are going to manage it. You could always give him a lien if he is worried about you selling without making him whole.

Find a real estate attorney and buy him lunch. Ask him how to structure the deal.

Loading replies...