internext
20-05-2010, 01:11 AM
Hi. I'm thinking to get more involved in real estate through partnerships rather than investing in it myself directly. This is because I don't really have time to go out the find the good deals and make it all happen. I'm about to start some deals with partners, but I know that partnerships can have some downsides. But basically I have over $2 million to invest and I don't think it's easy to find the right deals by myself when also running a business.
The way I'm trying to structure it is that as an investor I get a preferred return (could be 10% for example) and then any return above 10% we split at different percentages between 25% to the active partner and 75% to me as the investor and other deals are at 50/50. But the first 10% of returns go to the investor.
One example is a deal in Florida where we can get 20% net rental returns by buying cheap properties and renting them out per room.
Haven't done anything in Australia yet. Let me know your thoughts.
The way I'm trying to structure it is that as an investor I get a preferred return (could be 10% for example) and then any return above 10% we split at different percentages between 25% to the active partner and 75% to me as the investor and other deals are at 50/50. But the first 10% of returns go to the investor.
One example is a deal in Florida where we can get 20% net rental returns by buying cheap properties and renting them out per room.
Haven't done anything in Australia yet. Let me know your thoughts.