All Forum Posts by: Steven C. Suarez

David Zheng great advice!!

Chinmay J. Great questions. The contract really needs to be thorough, covering all that stuff.

I love BP! This is so helpful, thanks y'all!!

Jessica Zolotorofe oooooooh! Now I'm starting to get it. So it kind of is like buying into a stock. You each agree upon a reserve amount and whatever the profit is after that you split 50/50. So if the house rents for less one year, his return is less. Or more, then more. Or if the roof needs to be replaced, there might not be a profit that year. And if you decide to sell the house, he just gets his 10k back. Even if you made 50k in profit on the sale?

Max Tanenbaum acquisition cost being the 10k? So if my mortgage was $500/month and I rented it out for $1000/month we'd each split $250/month? Would this go on forever or just until he's paid back plus interest?

Chinmay J. So what's usually the offered interest rate when someone gives you money? For example, if you gave someone 10k for a deal what percentage would you ask for in return and what amount of time do you expect to be paid back in full?

Jessica Zolotorofe Great explanation thank you! So in the JV model, you just pay him monthly until he's paid back in full? What's his incentive to invest then? Do you promise to pay him back plus some extra?

Chinmay J. I haven't yet asked a friend for money for a project. I do have friends and family interested in giving me money for future deals. But I have no idea how to structure deals with partners. That's why I'm asking how y'all have done it before and any advice would be golden. 😀

Yes

Hi friends, how do y'all usually divvy up money made from buy and holds that a partner/partners have helped you to buy? For example if I bought a 100k home in my name and needed 20% down and a partner gave me 10k (10%) to help buy it. I obviously won't be able to pay him back right away if I just planned to buy and hold it. What kind of arrangements do y'all usually do or recommend? Same question with multiple partners. Thanks! Stevo from Dallas Texas