But.... no risk, no reward. 

The profit-sharing split on the back end ensures that they are rewarded for their investment and participation.Like you mentioned Chris, giving your investors a significant portion of the profits on the back end is important to align incentives and make the deal more appealing to them.Thanks!

@Michelle Garcia. being a landlord can be very rewarding and / or very frustrating. 1.

You most likely will be purchasing the property under an LLC.If you want to be very passive you can always get into a syndication. 50K should be enough to get started and you leave the management of the asset to experienced investors while still getting the rewards of investing.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $23,000

Cash invested: $30,000

SFR in D class area that had been partially remodeled (poorly) with a great yard tha...

The "risk-reward" structure in my mind is the PML gets 100%, and you get a wage/salary for whatever you are putting in.Of course, "creative deal structuring" to my limited knowledge says that you partition is so everybody gets something --- "a piece of the pie is better than none of the pie" (or something like that). 

For example, foreigners cannot own agricultural land.The property must be registered in the buyer's name in order to be legally owned.The buyer must pay the property taxes on the property.The buyer must comply with all applicable laws and regulations governing property ownership.Conclusion:Buying property in Egypt can be a complex process, but it can also be a rewarding investment.

Each of those carries less work for you but reward may be less.

We get rewarded for taking action and this is no different! 

This is a solid strategy for protecting yourself with your risk/reward ratio on bigger projects, but it doesn't always work on properties that need little in repairs.