50-50 partnership #newbie

4 Replies

Hey guys. I have a really good friend that i know from high school who wants to invest in real estate. She has the money and i have the knowledge. She doesn’t wanna be involved at all in the day to day. Does 50/50 sound good or should she get more?

50\50 Sounds good to me. I am in a similar situation with my mentor where we agreed that I bring the properties, he brings the cash, and we split the profit 50/50. Its worked great for me.

I’m in a similar situation with my sister. We haven’t talked specific #s but that seems to be where we’re going. I wonder though if you should discuss a time frame for that arrangement. Eventually you will may have the means to do deals without that partners funds and if all they contribute is cash, you might be better off with a different arrangement.

Example: first 4 deals 50/50, then we re-examine or something like that. I would hate for a partnership to go sour because of a lack of communication on the front end.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.