And that's money down, not including loan closing costs.By the time you have brought to closing: Lender fees, points, Title fees and pro-rata interest payment until the end of the month, then depending on the size of the loan you are probably looking at, extremely roughly ~$7K+ in closing costs alone.Best wishes on your endeavors.

They asked about a pro-rata return of the rent which I said I’d consider if they left the condo clean and damage-free.

Additionally, depending on the market, you can allocate to each tenant their pro rata share of the common areas square footage in an office building.

After that, distribute the returns at a market rate based on who's doing the work.For example, assume the following.Land Contribution: $10,000Cash Equity: $30,000Total Equity: $40,000Project Loan: $160,000Total Sources of Funds: $200,000Land: $10,000Hard Costs: $145,000Soft Costs: $30,000FF&E: $15,000Total Uses of Funds: $200,000The joint venture can then be structured as pro rata split to an 8% preferred return and 50/50 split on everything thereafter if you are doing the work.

If they do, they are either participating as if they were an investor, which means they are subject to the same terms as everyone else including preferred returns, or they invest separately and have a 100% claim on the pro-rata entity-level cash flow which makes a preferred return on their capital moot.

But it should have been nipped in the bud earlier if there was equity...Hawaii (HI Rev Stat § 667-31 (2016))(b) From the sale proceeds, after paying all liens and encumbrances in the order of priority as a matter of law, after paying the foreclosing mortgagee's attorney's fees and costs, after paying the fees and costs of the power of sale foreclosure, and after paying the moneys owed to the foreclosing mortgagee, the balance of the sale proceeds shall be distributed by the foreclosing mortgagee to junior creditors having valid liens on the mortgaged property in the order of their priority and not pro rata.

If so, I would guess an offset of the deposit pro-rata per day might be reasonable.

If a vote is required the investors vote pro-rata, so yes, a $500K investor has more votes than a $50K investor.

I will be using an FHA loan, and the seller will be rolling $100k of proceeds ($600k cash at close and $100k cashto sit in the LLC) for the pro rata % ownership of the property ($100k/$700k).

In general, RUBS allow you to split the expense of water, trash, etc on a pro-rata basis and add it to the tenant's rental amount.