BRRRR profit split !!

[Thomas Smith]

Hello BP Fam !! I had a question about splitting profits on a BRRRR. My plan is to retain ownership of the property after the refinance and split the profits. If anyone has worked with 2 or more entities on a BRRRR I would definitely appreciate any advice!!

[Andrew Postell]

@Thomas Smith if someone is providing money to execute on a transaction but doesn't want anything to do with the property we would call that a loan. That's all. So treat it just like a normal loan. The concept is there, however (and this is a big however) how you actually pay them back might be a little challenging. With a BRRRR you don't sell the property, you REFINANCE. And since you are refinancing, the amount of money you get when you REFINANCE will depend on your long term lender. How much you pay for the property and how much repairs will be are also numbers to factor in. So logistically you need to account for several things but conceptually this is just a loan.

Feel free to ask anything additional if you need.  Thanks!