Rehab partnership Structure

[Tom Fuge]

I was asked by a property owner if I'd be willing to provide the capital to fund a rehab/reposition project and become a part owner. Does anyone have experience with this? Any insight would be greatly appreciated.

Personally, I don't get excited when I am not the majority owner.

Thanks

Tom

[Will Barnard]

I would get very excited in your shoes on this opportunity. You have the chance to put just rehab money into a project and get a nice quick return on it. That said, structure is important to protect your investment. I would do an option to purchase along with a lien against the property. This places you in a lender position with all money releases provided after your inspection and approval of work performed and the option to purchase (which should be recorded) provides you the protection in the event it is all fixed up and the owner decides not to sell.

This is an opportunity to invest with a small amount of money and small risk for what could be a decent reward. Additional structuring may be necessary depending on more details not provided herein.