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Updated over 8 years ago on . Most recent reply

Bobby Holley's profile image
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Bobby Holley
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Bobby Holley's profile image
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Bobby Holley
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Bobby Holley
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Rehabbing & House Flipping

What Percentage Should I Give Financial Partner

Bobby Holley
  • Entrepreneur
  • Duluth, GA
Posted

I am purchasing a house for $200k and I need to bring in a financial partner to pay about $25k in rehab costs.  I expect to generate a profit of about $40k.  What percent of the profits should I share with my investment partner?

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J Scott
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ModeratorReplied

Why don't you just borrow the money from him at an agreed upon interest rate?

As an equity partner, he'd be taking more risk, so you'd want to pay him more than if it were a straight loan.

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