All Forum Posts by: Adam Costello

Thanks, guys. Our strategy is buy and hold for he long term. 15 plus years. I will not be doing the work myself, just overseeing all rehab work. We've recently closed on two houses and have another under contract. And would like to build this to having a minimum of 15 long term properties.

Sounds as tho both of you feel as tho 50/50 is more than fair. I am doing everything.... finding the deals, having them rehabbed and handling all property management. Even tho we haven't finalized our partnership split as of yet.

Hello Guys & Gals,

I've followed the information on this great website for several years and find this website to be very educational and informative. I was recently approached with an opportunity and am hopeful that I can gain some insight as to what a fair partnership typically consists of. I am a ten year RE investor with a long term hold strategy, however, I do flip a few properties per year to raise capital while accumulating my long term hold rental properties.

So, a wealthy individual approached me 3 or so months ago and asked if I would be willing to partner with him. He has the money, but not the time, as he owns several businesses that command all of his time. He said that if I would be willing to do all of the hands on work in our RE partnership, that I can use his money to invest. To this point, I've invested solely using private mortgages and have never partnered with anyone.

Btw, the profile of properties I buy are low income that generate an approx. 22 -24% cash on cash income ratio. A 50% split would give him half, which I am sure is significantly higher than he's getting with his safe $ thru his advisor. Just not sure if 50% is typical in a partnership such as this. Is 50% too aggressive on my part?

I am hopeful that some on this site can lead me to a typical "fair" agreement with similar partnerships. Thanks in advance for any helpful information!