PROPOSAL: OFFSHORE INVESTMENT
I live in South Africa. We have a fairly vibrent property rehab market here. An offshore investor wants to join hands with me - he supplies the full funding - I do the rehab work. WHAT IS A FAIR SPLIT FOR THE PROFIT - IN TERMS OF PERCENTAGE? 50-50; 55-45; 60-40; 70-30. WHO SHOULD GET WHAT PERCENTAGE? 8-/
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IMO, he is taking the risk of which from what i read you have no risk....but, he wants to join w/ you so to me he is needing you the rehab....you two will ultimately have to come to terms in your contract before moving any further, but i would start possibly a little high...
after his costs have been paid back to him/her i would suggest 65/35 you....you can always lower offer, but it is hard to raise........ask what he/she thinks first, maybe he is thinking 70/30 you, you never know....he got the deal, he put up the money, and he gets a solid ROI.
[addsig]
Bearo,
The one with DeepPockets....always sets the deal....
....although it won't hurt to broach the subject with the REI.
....as always,
GoodInvesting, Rocky