Hi I’m flirting with the idea of being a mostly silent investor. If I put, say 40% down on a property that a partner has sourced, is it reasonable that the operating partner has a 50% equity stake if he puts no money down? I’m thinking it is not but wanted to hear thoughts from people with more experience.

like
Posting as :
works at
You are currently posting as works at

50% stake and $0 down is unheard of and you’re getting taken advantage of. They need to put money into the deal.

like

Most silent investor offered to me seem way out of balance in terms of ownership stake. Rather than negotiate I just walk away because it’s so far off, but what is reasonable?

Depends on how much work is involved. If it’s just a standard long term rental, 50% stake for sourcing and then “managing” the property is wild. If it’s a short term rental, or there’s major renovations involved, then it might make more sense.

If you were to own the property outright and just pay him to manage it, how long would it take to pay him off? So say you’re charging $2000/rent. If you’d pay him 5%, he gets $100/month. His half is $20,000 that you’re covering - it would take him 200 months (more than 15 years) until he works off that equity. Now if you’d be paying him $500/month and he’d be paid off in less than 4 years…suddenly you’re technically making money on him.

Personally I wouldn’t like my partner not having any stake in the equity. Would he be on the loan?

Long term rental management is usually 8% to 10%, unless you have scale.

Short term rental management is anywhere from 15% to 30% depending on responsibilities

Sourcing the deal deserves some level of equity but if he’s also expected to manage then yeah he deserves more than at least 10-15% especially when it comes down to picking up the phone deal with tenant issues - Ac breaks, leaks and floods (all of which I’ve dealt with in the first 9 months of owning my own property)

At end of day you have cash, he doesn’t. He has time to manage, you don’t (unless you do). If he’s not bringing value or working his equity with no money in the deal then walk.

I’d rather pay a $5k “finders fee” than give someone a stake in the deal

Related Posts

What would be the CTC for technical lead role?
They are giving 15 percent variable as well.

Will I get 100 percent variable on quarterly basis or not?
What's you experience with Infy?

like

When does wfh end in EY GDS?

like

Hello,

If someone decide to resign within probation period itself. what will be notice period and if reason is salary, will Amdocs revise the package?

I have newly joined KGS but still at home location wfh, i was told by a colleague that they received an invite for a New year party for all KGS employees on 20th dec, does anyone receive it? Can I attend it from a different office than the base branch?

like

What's your controversial Houston opinion?

likesmart

What’s the best way to maximize having both the chase freedom unlimited and sapphire preferred?

For context, I’ve had the unlimited for 2 years and just opened the preferred because of the bonus offer. I will hit the $4k spending target, but after that, what’s the best way to use these two in tandem, given the unlimited rewards are all around much better.

like

Investing newbie here trying to invest my hsa. Debating if I should do 100% on something like viix for simplicity or if I should diversify? If diversifying, what’s a recommended approach? Perhaps 2-4 funds? Many thanks for the help.

like

Thank you all for existing on Fishbowl and for being such a supportive community. It’s been a difficult year, but at the end of the day, I’m glad to have people to commiserate/celebrate with ❤️🙂❤️

like

Any news on EY Split? What are the expected benefits for employees?Tata Consultancy EY

like

6 PM- This bowl will be lit 🔥

More lit than ever!!

likefunny

Hi fishes,

I am working as analyst in kgs consulting team with total 5 years of exp. I have got an offer letter from accenture with 10lpa + variable. The role is of senior analyst in technology side.
My current compensation is 6.5 and manager ia saying that they will promote and increse my salary.
What should i do? Please suggest.

like

Hi All,

My H1B is set to expire in Aug 2022, my employer is filing my extension, assuming I will get it till aug 2025 and I need to go to stamping.Parent is sick, needs to undergo a surgery. I want to go to India, to be with her during this time. My question here is if I go for visa stamping will I get stamping till Aug 2022 or aug 2025?
If I get stamping till Aug 2025, Can I come back before aug 2022 without any issue?
If I get stamping till Aug 2022, will there be any issues at port of entry

like
like

Hi All,

I have received a call from Amazon for an interview. Can I expect any call letter to attend the interview?

like

Which companies offering 25L above for 7 years experience ? Skills: selenium,API automation,Cypress,SQL

like

Hi Fishes.! I'm actively looking for an opportunity in Testing. Having 5 yop in the Industry. Looking forward for any referrals.

API Testing
Mobile Application Testing
Performance Testing

like

What’s the most effective way for producers to network for new job opportunities?

like

Do you ever regret pursuing the life of a soldier?

like

Guys I'm planning to buy some formal shoes as my WFO is starting from next Month can u please suggest me some from Flipkart?
As I'm a newbie I don't know anything.(about office wears)
Just guide me 😂

like

I’ve been promoted with a title but not the responsibilities. I’m job searching and am primarily looking at postings that don’t include my promoted title — I’m not sure how to professionally articulate in an interview why I would be willing to take a “step down”. As I see it, I’m looking for a lateral move because I don’t actual have experience as a true “senior”.

like

Additional Posts in The Real Estate Bowl

Anyone got a loan with Guaranteed Rate? Started looking for a condo(Chicago) and keep seeing them pop up. Looks like they charge $1290 lender fee, but wanted to see if anyone had experience with them

like

Any one knows what’s the easiest way to order a radon test for new construction?

like

(1/2) People who work in the Bay Arae peninsula (Menlo Park) and live in the east bay- which is a good place to buy a house, upcoming, easy to rent or Airbnb in case I have to move back to my country! Prefer single family home as young as possible.
1- brentwood
2- Pleasanton
3- Dublin (expensive)
4- San Ramon (very expensive)
5- what else?

like

I am wanting to start investing in real estate in the new year… I’m using this month to read up on it and familiarize myself with it. I am a true beginner and wanted to ask for any tips, tricks, advice, books, videos, magazines, podcasts, etc to start? Please let me know!

like

Hey everyone, curious about pros/cons and profitability of renting out a unit long term vs AirBnB. Let’s say it’s a condo downtown in a big city, how do you figure out what’s the better option?

like

Is it better to get credit at closing or lowering the overall home price?

seller is offering to lower the cost or give credit to fix the flooring

like

Better mortgage vs. Rocket mortgage - anyone shopped with both and what swing your decision?

like

Is there an investment fund or group that anyone knows of? I heard of Fundraiser but it seems very convoluted. Looking for an investment group or development group to invest with

like

I am looking to buy my first property soon - preferably new constructions (anything except condos) anywhere in Ontario/Canada. Any suggestions where I can turn to find new construction projects? I understand I need an agent. Until I find a good one, I am looking at the houses myself. Any suggestions where I can get information about new projects happening in the province?

like

How do you judge a low ball offer with how the market is changing? Earlier this year, you would look at comps and say this is the value. Now with rates going up and people pulling out, how do you justify the value? (View point from the buyers end)

like

I would like to learn more about development and real estate. Can anyone recommend any books or courses that you think are informative. Eventually I would like to own a few apartment buildings, but I know there is a lot I need to learn 1st. Any advice appreciated. 

like

Is a sloped floor of 1/2” over 10’ noticeable? I have to make room for conduit and cannot trench in my current place

likesmart

Y’all I am struggling on these “light” home improvement projects we decided to take on with a recent house purchase. Plan was just to replace carpets, paint some walls, and replace kitchen appliances. Now added on new faucets, other bathroom hardware / mirrors / toilets / medicine cabinets / exhaust fans, baseboard recaulking and cleanup, kitchen sliding door, ceiling fan rewiring and install, window replacements… how do I rein it in?? So stressed out and we keep delaying move in. 🤯😱😭

like

Correct me if I'm wrong but isn't it more advantageous to have low housing prices and higher interest rate? If that's the case, you can always refinance when/if the interest rate lowers again. Is there something I'm not seeing?

like

I'm early in my career, managed to save $30K to invest, and want to get my hands dirty with a rental property without too much risk (e.g. no HML/flipping). It sounds like that's a tall order in the NY/CT area given the prices, not to mention whether I'd be able to get a mortgage on anything below $100K, but I figure I'll give it a shot anyway. Any advice on what you might do in my position? Am I being crazy with this idea?

like

Anyone sell to Zillow? Got an amazing offer from them, but naturally my floor decided to start deforming right before inspection. No water damage - I can get someone out here to fix it ASAP, but wondering if it’s worth the hassle. Mostly worries inspector will think there’s water or foundation issues

like

Looking to move out of California, and considering buying a townhome in Atlanta for ~$650k. Any thoughts on the Atlanta real estate market?

like

At what income level should one be comfortable to spend 2400/mo on rent in HCOL? Assuming single, no kids, no debt or major expenses.

like

I recently bought my 1st home in TX. I want to get into real estate and eventually own/rent out multiple homes. Are there any good recommendations/tips on books/articles/websites that others have used to get started?

I've read about HELOC and cash out refinance to get a 2nd home but articles are so scattered that it gets confusing which is better in terms of tax benefits and immediate costs, etc. Anything others have found helpful that summarized how to get started would be great!

like

What are some of the things that were a MUST when buying your first home and what were some things that you were more flexible with and why? I’m having a discussion with my partner about what we absolutely need and what can be worked on later.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal