Fair Partnership Split for my specific situation
Hello everyone!
I'm working on partnering with someone on a repositioning deal in Memphis, TN and we both live in Portland, OR so neither of us would be necessarily boots on the ground.
He would be the main funding source (essentially 85-95% of the deal) I'll put in as much money as I can whenever we close. As well as providing the net worth to convince lenders to see we're playing with the big boys.
But I would be the main point man co-ordinating the brokers, lenders, as well assisting my partner who, while extremely knowledgeable in real estate transactions and creative financing, does not himself have experience specifically in larger apartment complexes as well as the english reading comprehension to delve into the legalese of the contracts and will rely on me and his daughter who will also help translate.
All I can say is I've read Multi Family Millions by David Lindahl/Crushing It by Brian Murray so I have some ideas of how to reposition properties and tactics to deal with issues that come up. But of course practice will always trump knowledge that I've read in a book.
Given this info would it be fair to ask 10% above what I am able to fund myself. So if I contribute 5% of total acquisition costs, I'd receive 15% total equity and cash flow.
After the conversation today I realized I need to get my feet wet and probably should just bite the bullet and just use this as a learning opportunity and just split the percentage based solely on my monetary contribution. I'm hungry to play with the big boys in real estate and I see this as my opportunity. But there is a feeling that I should stand up for my contribution to the deal.
Would love some guidance from the Bigger Pockets community.