All Forum Posts by: Jesse Tomlin

Hi Jesse,

Yes, that is the way we structure deals with our capital partners, the profit is split 50/50 for every deal. Everything is spelled out in the LLC operating agreement as a 50/50 split there, that way no one gets greedy and tries to get creative at the end.

Good Morning BP Community,

Is Hard Money really for suckers?

My wife and I have done about 30 flips over the past few years, typically with a partner of ours that has a good amount of cash which he invests, then we split the profit. He has also invested like this with us on a couple of high-producing STR beach houses (that net each of us around 70K per house each year). We do all of the work and management, he invests the down payment and improvements (20%, plus improvements), we get the DSCR loan in our name (80%), we split the profits. Each house is set up in an LLC.

Before we started working with our partner, we did a couple of hard money loans for flips, which went fine. We really like our business partner and want to keep working with him, but we don't want to keep going to him for every deal that we have and use up all of his cash. He really likes us and has a hard time saying no to us, I am exploring alternative sources for financing some of our flips and STRs.

I saw an ad for PrivateMoney.com - the Headline says Hard Money is for suckers. Is it? Has anyone worked with PrivateMoney.com or a similar service? Is it better than Hard Money loans?