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Updated almost 8 years ago,
Structuring a fair split
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?