Equity Split

Cajun_Persuasion profile photo

Hello,

Any ideas on how to structure a equity split with a homeowner. Which contracts to use etc

Comments(5)

  • pejames17th February, 2004

    Depends on the situation. If they are in foreclosure, don't put that in writing. If it's an outright sale and you are handling the deal, just write it into the contract. I should be fine. But, as I am not a lawyer, I would seek advice from a professional. Your laws might be different than IL. Good luck

  • davehays17th February, 2004

    Derrick Ali on this site may have some useful advice on this subject.

    You may want to find his username and private message him about this, as I am pretty sure he does this using land trusts, but I do not know the details.

    HOpe this helps, dave

  • compwhiz17th February, 2004

    The easiest way to keep it away from prying eyes is to put a property in land trust and assign homeowner a percentage of beneficial interest in the trust.

  • Cajun_Persuasion17th February, 2004

    here is my thought. would you iniate the land trust but not record it? for instance if you did not sell the house.

  • InActive_Account17th February, 2004

    The general formula is to establish your "buy-in" at a discount below market value (the bigger the better).

    Then you agree to split the net amount above Fair Market Value over an agreed timeline. The split doesn't have to be equal. There are so many variation that you work out 2-3 scenarios and fly them by the owner as needed.

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