Splitting profits- 50/50 or no?
Hey fellow real estate freaks!
Ok, so I did a search already about doing investing with a partner. Not quite finding my answer. And I'd just like to hear what your input is about this.
I want to start investing. Yes, it's scary. I lost out HARD on a deal back in 2004 (Because, you know, EVERYONE was doing it. So I did, too. Didn't do my due diligence/research, just jumped onto the bubble bandwagon)
Like many of you are (I'm guessing), I am much more cautious now. I am a BP member, I have a couple books (One is BRRRR, which I think is a FANTASTIC plan, but it feels too risky and expensive for a/this beginner), and I am soaking in all the BP podcasts and info I can get.
Still, it's hard to trust my own judgment. I get excited about properties easily. May jump in even if the numbers aren't quite that great.
SO- I have a friend who I have done business with for the past 4 years. We work together BEAUTIFULLY. We are extremely invested in each other. We have done well with one company we own.
I think that RE may be a great way for us to diversify our portfolio. However, I would be putting up all the capital. He may be able to contribute a little, but I have the bulk of it. (@50K)
Maybe a flip would be best to start? I get a mortgage on a property, I have the $ down, he helps with search, numbers, record keeping, management of the contractor, we do some of the work ourselves, etc. Maybe his parents could loan us $ for the remodel. I just FEEL like it will be easier with a partner.
That said, would you do a 50/50 split? I do happen think that this is fair. I know he would hold up his weight in all of the efforts. He's a very committed worker.
I'm just not sure of the percentage split. I want to be fair.
How would you split it?
Thanks so much, you guys on here are 100% amazing with all of your answers and help! (I DO know that percentage, lol!)
-Kelly