Joint Venture Split

[Evan Kummer]

Hello,

In terms of joint ventures, I am fairly new at this. I have a property under contract and looking to do a flip. I am not putting any of my own money in this deal. I am just putting the deal together. Does anyone know what would be the proper split?

Thanks! 

[Will Barnard]

100% of the money is typically worth between 50% and 80% of the deal and the details have a lot to do with the range I provided.

In a JV where one party is putting up the money, it us typical that the other party found the deal, negotiated it, contracted it, managed the rehab, and managed the sale while the money partner was silent, only the money was working.

It is also common for the money partner to get a set preferred interest rate and then the 50% split. Of course, everything is negotiable!