my son the realtor
My son is new realtor and 23 years old. We would like to form a partnership to buy and rehab/rent. I would like an opinion on how to draw up a partnership and how to split profits/income. I will provide the down payment and take out the loan. He will [already has begun] find possible properties and scope out the neighborhoods to make sure they are not "sketchy" and place the bids.
I work at the construction dept of a large hospital and have a friend who is a seasoned project manager with a background in building new commercial properties. He might agree to consult in helping us estimate the work that will need to be done prior to purchase so we can determine if it is going to be a good property for us.
I plan splitting the rent/proceeds w/my son, plus he'll get the realtor commission [i figure yes, as I would pay it to someone else if he weren't one - but I wonder if there are other thoughts on that]
As for my consultant friend, do I pay him a flat fee [if yes, how much is fair?] OR do I offer 1% of income [rental and sales] to entice him to help with future rehabs]?
Thank you in advance for your thoughts and recommendations!