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Updated almost 8 years ago,

User Stats

76
Posts
34
Votes
Joe Stafford
Pro Member
  • Flipper/Rehabber
  • Fort Lauderdale, FL
34
Votes |
76
Posts

Structuring a fair split

Joe Stafford
Pro Member
  • Flipper/Rehabber
  • Fort Lauderdale, FL
Posted

I'm curious how people are structuring splits with people who bring deals their way.

Assuming the following scenario; Party A locates and negotiates the deal to purchase property 123 main st. Party B puts up the funds for hard money down payment (Typically 25%) as well as all funds required to complete rehab and holding costs. Party A and B share in the management of the rehab (contractors, choosing finishes etc.)

All expenses (Purchase, Holding, Rehab Etc.) get paid back to Party B and then the remaining sale proceeds (profit) get split X% to party A and X% to party B?

Thoughts?

  • Joe Stafford
  • Loading replies...