Partnership advice

[Bruce M.]

Hello all. My sister and I have just started an LLC to do flips and buy and holds. We have someone who is able to assist us on a "silent partner" basis. This person is assisting by lending us their credit standing. What would be a fair compensation for this?

[J Scott]

I'd charge someone a lot more to borrow my credit than to borrow my cash. I can attain more cash relatively quickly, but the types of problems that co-signing on a mortgage can cause can take years (decades!) to fix.

Have you asked the person what they want? That would be a good place to start...maybe they'll offer you something better than you were willing to pay?