Joint Venture Question

[Caleb Smith]

My business plan includes partnering with capital partners on BRRRR properties.

I will be finding the properties, managing rehabs with contractors and handing it off to a property manager after that.

If we split the ownership 50/50 and sell the property in 5 years, how does the profit split work?

1) Would we pay back the capital contribution from the capital partner first and then split the profits from there?

2) Or would we split the equity amount 50/50 in general since my contribution was the labor/sweat equity?

For some reason, I am struggling to figure out the proper way to do this and just need some clarification.