Brings 2/3 to the deal.
Brings the Deal & the 'People'
(The Experience & the Work).
Manages the projects (i.e. layout, permits, design, budget, timeline, etc.)
Manages the team (lawyer, mortgage broker, trades, insurance broker, realtors, city inspectors, etc.)
Rents the Property.
Deals with the ongoing Management of the Property.
Brings 1/3 to the deal.
Brings the Capital.
This is the down payment (usually 20%); The mortgage qualification; The renovation costs; The closing & carrying costs.
The investors goes on title of the property.
The Investor always gets paid back their invested money first.
Any surplus is split.
Any money left in property is split.
The property title remains in the investors name, and all profits from the property are split 50/50 between HCP and investor.