Deal funding from family/friends

[Colby Fuller]

Hi there, so I have a question on asking for funding on deals from interested family and/or friends. How have you all approached them the first time? How was the deal/contract structured? I’ve heard Brandon say he’s done it where he’s brought the deal to the table. They brought 100% of the funding and they all just split the profits/cash flow 50/50. Does that mean if you brought bring the deal to the table and you have half of the needed funding, in the end your split the cash flow 25/75? Thank you so much for sharing your experience! I’m learning so much from everyone on here, y’all rock!

[Chela O'Connor]

@Colby Fuller It depends on the deal and everyone's needs. If it is a short term investment (flip, BRRRR, etc) you can just borrow the $ at a decent rate (8-12%). I borrowed 50% of my first deal from family at 10%. As I have proven myself and the returns, I have lowered the interest. If it is a long term investment, you can structure a % cash flow. My family members were not prepared for a long term investment in the beginning because I did not have a track record. Now they are happy to invest long term. You can structure it in a way that works for everyone. There are tons of ways to do it. I hope that helps.