Rehab work for equity?

[Tomas Janusas]

I am a licensed contractor and I enjoy working on houses.

Recently I found a partner who would provide a down payment to purchase the investment properties, and I do all the rehab work in exchange for equity.

I find deals, mostly mid size SFR, do the rehab, maint., and management. Partner provides cash down payment for the investment.

What would be the right partnership structure? How much equity would you give away for either side of the deal?

[Greg Dickerson]

Originally posted by @Jaysen Medhurst:

@Greg Dickerson, what are the SEC concerns? This doesn't look like the buying or selling of securities.

You want to make sure you are in compliance with regulations if you are taking on investor or investors for the projects. If you have a passive investor, even one that does not have an active role unless that investment is a private mortgage that would be a security. A lot of people make the mistake thinking one silent partner / investor is not a security but it is. That’s why it’s always best to run tour structure by a securities attorney. @Mauricio Rauld can elaborate