I don't think that agents realize that they lose all credibility putting a post out there like this.

Let us know if you’d like to talk further about this.

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment? 

I still made it work, but man, it was close.Has anyone else been blindsided by something in a deal like this?

How did you finance this deal?

Are there any Lenders this offer Line of Credit for investment property? 

With closing costs, housing costs, agent commissions, my HELOC costs, I estimated about $20-$30k profit, depending on sale price.But, now I am thinking this would be a great BRRRR to learn those ropes as well!

You would typically use a lawyer to set this up for you.

If I am understanding this correctly the $175K is the equity amount the lender supplying the construction debt requires so I am guessing this is a roughly $900K total cost project. 

The information contained in this post is not to be relied upon.