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Updated about 10 years ago,
Investor Structure
Hi,
I was hoping for some insight into structuring a deal for a fix an flip. The total cost to acquire and rehab the property will be about 250K. I have an investor willing to put up 125K and I am looking to put up the other half. I found the property and I will be managing the rehab, the investor will only be a money partner.
I would think that a 50/50 split with 50% going to capital partners and 50% going to the party that does the work makes sense. So in this scenario I am planning on structuring it where I will get 75% of the profit and the investor will get 25% (50% of the 50% that goes to capital partners). Does this seem to be a fair way to handle it?