Here’s the situation:Key Project Details:•Property Size (pre-renovation): 250 sq. meters (2500 sq. feet)•Purchase Price: 250,000 EUR (1,000 EUR/sq. meter)•Renovation Costs: 750 EUR/sq. meter (includes kitchen, appliances, quality furnishings)• Loan costs (during renovation and renting): 350 sq. meters (due to attic expansion)•Property Size (post-renovation): 350 sq. meters (due to attic expansion)•Post-Renovation Layout: 2 separate apartments•Airbnb Income (24 months): 2,500 EUR/month/apartment (= 5,000 EUR/month)• Other running costs: 600 EUR/month•Projected Sale Price (after 2-3 years): 850,000 EUR (approx. 2,500 EUR/sq. meter)•Closing Costs: Negligible in Tbilisi•Real Estate Agent’s Fee: Typically 3%, but negotiable based on who hires themFinancing Setup:•Property Purchase Financing: 100% bank financing at 5.9% interest (bank has even financed 150% to cover some renovation costs in the past)•Renovation Financing: Our friend is offering to finance 250,000 EUR in cash for the renovationsProposed Partnership Structure:•Work Involved (on our side): Full renovation (10-12 months to complete), furnishing, and property management through Airbnb until the sale (2-3 years)•Profit Split Proposal: 60% (us) / 40% (friend providing renovation financing)Questions for the Community:1.Does the proposed profit split (60/40) seem fair, given the work we would handle (renovation, furnishing, property management)?

We did it once about 8 yrs ago (although it was structured more like a lease-purchase).

These strategies, when combined with solid due diligence, can help structure deals that might otherwise fall through.

My best recommendation, though, is to have a lawyer structure the contract, and make sure you are put on title.

Lots of ways to structure this. 

It all sounds good it really comes down to the attorney you have to structure it in a way that allows for greatest flexibility in case you know what hits the fans.I had that happen a few years ago in an equity deal and we had the other partner buy us out of the deal because it was taking a lot longer than they anticipated.

For example, we converted an office structure into a duplex, which forced appreciation and positive cash flow.

Hi All,I'm in the process of pivoting 3 units from a build to sell townhome project to rentals and looking for some entity structure advice. 

"The 123 Main St Trust"4.Set up a C-Corp in the state where your property is to avoid being taxed as a dealer and maintain coverage under that state's laws.Depending whether your property is a flip or a rental would determine how you structure your entities.This structure would benefit you both tax and liability wise.

Where it's still based on the structures value over the 27.5 years.Thanks for any help, I appreciate you taking the time to read and reply!