All Forum Posts by: Zach Wittmann

Thank you both very much for the info!

Thanks for the recommendations Alex. I currently have properties in Granite City, IL but am looking to buy in the Edwardsville/Glen Carbon area as well. Are you in those markets by any chance?

@Alex Flaugher, do you also happen to have any idea what the property management fee is for either of those companies you mentioned?

Thank you both for the recommendations! @Diana Dorantes, do you mind if I ask how much JMR Holdings charges for the management fee?

@Chris Deck, do you happen to know what Meyer Porperty charges as well?

I was wondering if anyone has recommendations for property management in the Edwardsville, IL / Granite City, IL area? Thanks!

I was wondering if anyone has recommendations for property management in the Edwardsville, IL / Granite City, IL areas? Thank you !

That makes sense. Great tip, thanks very much !

@Scott Krone, that's a great point. I think what I was trying to say was that my partner would be the one to take the financing out in his name and put the cash in for the downpayment and repairs. We would be 50/50 splitting the monthly cash flow (profits), as well as splitting the equity that gets built up from paying down the principal over time (other than the initial amount that he put in for the downpayment and repairs. Upon selling the property down the road, he would first recoup 100% of that initial amount, then we split the remaining equity at time of sale)..... I know that sounds a bit convoluted, but does that make sense? I want to make sure I'm not missing anything or making a mistake in the structure of the partnership.

One other question I had is this: if he is taking the mortgage out in his personal name, would we be able to quit claim the deed over to our LLC after he takes possession of the property?

Thanks so much for your input!

Hey Joseph,

I was wondering what you were planning on doing in that partnership when it comes to who owns what percentage of the equity in the house ?

For example, let’s use simple numbers and say you guys buy a 100k house, your partner puts down the 20k for the 20% downpayment, and then you rent out the house. 

Will he always retain that 20k downpayment portion of equity in the house (so for example, let’s just say you sell it down the road after paying off principal for multiple years for the exact same 100k price that you guys purchased it at: does he first collect his initial 20k downpayment, then you both would split whatever equity is left )? I was considering doing something similar so I was wondering what your thoughts are on that? Thanks man

Thanks so much Mike. I really appreciate your input and all these details !

Hey BP community, I was wondering if I could get some feedback on examples of how other people have structured their partnership with another investor who is solely a financial partner (silent partner)? What are your profit splits (I.E. 70%/30%, 60%/40% etc)?

I own a few rentals and have flipped a few houses on my own. Recently I was approached by someone (who I know well) about investing with me, and he wants us to set up a separate LLC to do mainly buy and hold rentals as well as do some flips.

He wants to provide 100% of the funding, but essentially be a silent partner, and do none of the work (he has another business that he works at full time). This means that I would be finding the deals, managing the rehab (we will be hiring the work out), accounting, as well as do all aspects of property management, etc.

I was hoping to get a few examples of what others have done in this type of "silent investor" situation when it comes to determining the percentage splits of the profits? I know there is no single correct way of going about this, but I was curious how others have structured it. What do you think a fair % split would be in this case?

I will also note that he (the silent partner) will own 100% of the properties that we buy and hold for rentals (he will be paying for them with cash, so no mortgages). We would only be splitting up any profits that are made (total rents collected - total costs). This leads me to my last question which is this: is it common to wait until the end of each calendar year to split up the profits (where I would actually receive a check for my portion of the profits), or do other partnerships do this quarterly?

Thank you all SO much for your feedback. It is truly appreciated !!