Trying to find a fair business deal between a friend and I for this renovation, looking for thoughts!

I bought a home last year and have been rehabbing it and living with my friends as they rent the spare rooms. I am very close to finishing and we are all moving out the end of this month. Once we move I am going to convert it to an Airbnb! I need about 10k to finish it all up, and I can probably stretch and make it work but my friend really wants to buy in and have me use his money for a small stake in the property and Airbnb business. This would relieve a ton of stress for me so I am for it too

I know the home is worth ~400k-420k once its completed, i am very good at analysis and follow the market religiously. I have already had an agent do an independent analysis and she came to the same number.

Since the house needs a bit of work still I thought I could sell him a 3% stake in the property for $11k which would value the house around 365k. Then once the Airbnb starts he will get 3% of the net profit (or pay loss) and after 2 years he can ask for me to buy him out or once we sell the house he gets 3% of the sale.

Do you guys think this is a fair deal? Any thoughts or opinions? I know people are gonna say don’t do business with friends but that is not an issue here.

submitted by /u/throwaway1326598
[link] [comments]

I bought a home last year and have been rehabbing it and living with my friends as they rent the spare rooms. I am very close to finishing and we are all moving out the end of this month. Once we move I am going to convert it to an Airbnb! I need about 10k to finish it all up, and I can probably stretch and make it work but my friend really wants to buy in and have me use his money for a small stake in the property and Airbnb business. This would relieve a ton of stress for me so I am for it too I know the home is worth ~400k-420k once its completed, i am very good at analysis and follow the market religiously. I have already had an agent do an independent analysis and she came to the same number. Since the house needs a bit of work still I thought I could sell him a 3% stake in the property for $11k which would value the house around 365k. Then once the Airbnb starts he will get 3% of the net profit (or pay loss) and after 2 years he can ask for me to buy him out or once we sell the house he gets 3% of the sale. Do you guys think this is a fair deal? Any thoughts or opinions? I know people are gonna say don’t do business with friends but that is not an issue here. submitted by /u/throwaway1326598 [link] [comments]

<a href="Read More“>View Full Article

Need More Commercial Real Estate Leads?SAVE 40% this month!

Our commercial valuation calculator was created to evaluate commercial real estate. In 6 quick steps you will know your NOI, CAP RATE, and IRR.

Now you can get your own branded version of our calculator!

Generated by Feedzy