@Taylor Dasch I'm pretty comfortable with my area that I can find another house to BRRRR. Her proposal was that she puts all the money down for acquisition and rehab costs and at the end we split profits 60/40. She suggested 60/40 because I will be acting as the contractor, as I'm able to do any of the work myself from demo, Plumbing, electrical, roofing, siding, window and doors, Framing, drywall, flooring, painting. Basically everything except foundation work I am set up to be able to do so I have huge cost savings. I realize I'm sacrificing time with this model but that's because I'm still growing the nest egg of investment money, and I've figured I saved enough on contractor costs to have longer holding costs. So I'm wondering what's a fair profit split at the refinance point if she has provided all of the cash for material but I've provided all of the physical labor of contractor work. I'm used to working alone so I don't have to put a real price on the contractor work and I'm not sure how to fit that into this deal. My guess at the moment for what is fair is to put an actual handyman price on all the rehab work I do and get paid on that from the refinance. At the same time from the refinance, she would take back all the cash she put into the deal and what is left from the refinance would be split 50/50. Then the rental income afterwards, with the thought in my mind that a property management company takes 10% on average of rents for payment and also that I will be acting as the property manager for our partnership, would it be fair for me to take 10%off the top of rent for myself as a monthly bill, set aside Capex and vacancy loss for the building then the rest of the profit of rental income be split between us 50/50. I'm trying to figure out what is fair as far as what we both are contributing.
You said "Or you could pay her $ back with a certain percentage then put her on a lower percentage than you" can you expand on this thought, I don't understand.
Thank you Taylor.
