How to Structure a Real Estate Partnership

How to Structure a Real Estate Partnership

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How to Structure a Real Estate Partnership



This week’s question comes from Kurt through Ashley’s Instagram direct messages. Kurt is asking: We’d like to buy a vacation property with my brother and sister-in-law. My wife and I would handle the management while my brother would bring the down payment to the table. How do we quantify each party’s contribution when dividing profit and equity in the property? 

Real estate partnerships can be a huge help to rookie investors, especially for those who have the experience but lack the cash to invest by themselves. It’s important to note that real estate partnerships can be set up in any way you prefer?—as long as both parties agree that the split is fair?—you have full reign of your partnership structure.

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

Ashley Kehr:
This is Real Estate Rookie, episode 174.
My name is Ashley Kehr, and I am here with my co-host, Tony Robinson.

Tony Robinson:
And welcome to the Real Estate Rookie Podcast where what we focus on is those guys and girls who are at the beginning of their real estate journey, who are looking to get started, or maybe the looking to scale from one units to five, or anything in between. But every week, twice a week, we bring you the inspiration, the information you need to get started, or keep going. Ashley Kehr, what’s up? What’s new? What have we got going on today?

Ashley Kehr:
Well, I think we should tell everyone about maybe our phone calls that we just both got at the same time. So Tony and I had take a little break in between recording because we both got phone calls. Tony. Well, go ahead. Why don’t you start with yours?

Tony Robinson:
Yeah. So I’ve mentioned on the show a few times, we’ve been looking to buy some commercial kind of hospitality properties this year. And we’ve submitted several LOIs since the summer, but it finally feels like we’re inching…