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?

If the seller is offering to cover buyer agent compensation, then there’s really no reason not to have someone solely in your corner.

Or if the person is not in my area I am willing to compensate.

Also- pro tip: The people in your market who are killing it won't ask you for compensation.

The obvious downside, however, is that they’ll offer higher interest rates to compensate for the added credit risk.If you’re willing to submit to a traditional underwriting process, I’m pretty sure you’ll be able to find a rate that’s several percentage points lower than what you’re being offered now.

The seller pays extra compensation to the listing agent who then splits it with your agent (this is the way most transactions were done before 2024.

Prioritize Communication with Your TenantsWhy: They’re directly affected, and maintaining trust is essential to prevent disputes.How:Sincerely apologize and keep them informed about the steps you’re taking (even if progress is slow).Consider offering additional compensation (like another rent reduction, covering temporary shower solutions, or a gym membership for shower access).Document everything in writing to show your good-faith efforts, this can protect you legally if tensions rise.2.

Legal Mistakes Can Lead to Lawsuits or Tenant ClaimsTexas has landlord-tenant laws on security deposits, repairs, evictions, and fair housing compliance.If you mishandle security deposits, maintenance requests, or notices, your friend could get sued or be forced to compensate tenants.Evictions require proper legal procedures.

He's refusing to communicate because he wants you to panic and (a) release him from his lease, and (b) possibly even compensate him for the impact to his health, his requirement to move, etc.2.

It's highly debatable whether $50k can be considered "reasonable compensation" if you make $200k from commissions on the properties you sell yourself (as opposed to a split with your agents).