What Is The Fairest Arrangement For A REHABBER & INVESTORs?
Seeking opinions as I comtemplate what is the simplest, fairest arrangement for myself as an accomplished builder/rehabber, and some investors who would like to put up cash and share in the profits.
Previously I've usually bought with mortgage loans, held in my name as my primary residence. So, I could save the loan closing fees, but as I usually have about 2-4 months of hard, fulltime work in each house it doesn't seem fair to do a 50-50 split as one initially proposed, unless I'm getting paid some additional set fee. I'm quite talented and experienced as a designer, craftsman, marketer, and can do the whole works, but am looking to sub out more of the mundane stuff, and focus my time on the creative things I enjoy, and be able to do more of these as a business now.
I could just pay a % interest rate to private lenders, but it might not save anything over my mortgage fees. I have a 798 fico so can get $$ easy, but there are some advantages to paying cash; no wait, more leverage, etc.
Appreciate all ideas and discussion on this. What has worked for you? How do you get paid, when, and how is the risk and reward shared equitably? :-o
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