All Forum Posts by: Aria Pearl

@Daniel Ryu

Hi Daniel,

I am looking to do a similar structure with my friends. Just wondering how you guys split up the equity / profit? Did the friend who put the home under his name get a larger share of the profits because he took on the risk / used his credit?

Thanks for your input!

@Andrew Postell Yes the loan will be in someone’s personal name but everyone is comfortable with that since the trust is there. On paper that person will be liable for 100% of the payment, but each will share in 1/3 of the expenses and profit.

What we are trying to figure out is, should the person taking out the loan in their name (on paper), get a bigger share of profit / pay less expenses? Do you have any suggestions to structure something like this?

Hello everyone!

I am trying to come up with the best way to split profits for a 3 person partnership.

We are looking to purchase a property for short term rentals. We are all planning to split the down payment evenly between the 3 of us, but only 1 person is qualified and will be on the actual loan.

If we are all on the loan and taking on the same amount of liability, than a 33/33/33 split sounds fair.

But if only 1 person is on the loan, what would be a fair profit split (with all other factors being equal)?

Thank you in advance for your input!

With 3 of us, we can just take a vote on decision making. But in terms of the profit split - I'm trying to see if the person on the loan should get a bigger piece of the pie? If so, how much more would be fair?

Hello everyone! 

I am trying to come up with the best way to split profits for a 3 person partnership.

We are looking to purchase a property for short term rentals. We are all planning to split the down payment evenly between the 3 of us, but only 1 person is qualified and will be on the actual loan.

If we are all on the loan and taking on the same amount of liability, than a 33/33/33 split sounds fair. 

But if only 1 person is on the loan, what would be a fair profit split (with all other factors being equal)?

Thank you in advance for your input!