- Joined
- Sep 24, 2009
- Messages
- 58
This is a continuation from this topic: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-16873-Why_Wont_It_Cash_Flow.html that got a little hijacked, but I found it interesting as it is something that I have recently come up against in a JV meeting. Read the discussion starting at invst4profit.
I was talking with a possible JV partner to go in on a deal with me. He is open to since he has (casually) been looking for a rental property on his own. He has personally been holding off because the money he would be using for the DP is currently invested in something that is making him 15% (no idea what he is invested in we didn't get into it). When discussing what the profit split would be on a property and how much he would get out of it he wanted to calculate the "loss" of 15% since he would have to pull the money out of that investment and have it added to his side of profit effectively making a deal with him a 65/35 split.
Now, I understand the logic to an extent from his point of view, but the reality of it is, he has to make a choice. Why should I personally be paying his current 15% interest because he chose to move his money out of one investment to another?
Comments/discussion welcome.
I was talking with a possible JV partner to go in on a deal with me. He is open to since he has (casually) been looking for a rental property on his own. He has personally been holding off because the money he would be using for the DP is currently invested in something that is making him 15% (no idea what he is invested in we didn't get into it). When discussing what the profit split would be on a property and how much he would get out of it he wanted to calculate the "loss" of 15% since he would have to pull the money out of that investment and have it added to his side of profit effectively making a deal with him a 65/35 split.
Now, I understand the logic to an extent from his point of view, but the reality of it is, he has to make a choice. Why should I personally be paying his current 15% interest because he chose to move his money out of one investment to another?
Comments/discussion welcome.