How would you structure this JV, what terms?

[Brian Alterman]

Hi BP,

I've got an opportunity to JV on a rehab flip deal with some other local investors. This is great for me as i'm new to the game and they can show me the ropes, they have the resources, and most of all they have the experience!

I'm willing to partner in a deal with them by providing some or all of the rehab money (just depends how big of a rehab).  I'm also a licensed agent and they are not, so I can list the property when ready to go on the market and can save us at least 3% commission there (possibly even 6% if one of us found the new buyer).

However, I'm not sure how to structure the JV and how the deal would work. Wanted to ask you what you would do in this case or how it can be a fair, win/win deal.

Purchase Price $130k

Rehab $56k

ARV $240k

They'll be handling the rehab and have the contractors, they also have the Private Lender to fund the purchase. I can bring the rehab money to the table, but rather than just give a loan for interest, I'd rather partner and split profits in the end.

Thoughts on a fair profit split? How do I take title to the property to have a secured investment when I'm not the majority lender?  Any other things I need to consider?