Private Money Profit Percentage

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I have recently made an agreement with a private money source to fund my house flipping endeavors. They have decided to take a percentage of the profits instead of a percent return of money invested. As neither the funder nor myself have done this before, we are trying to decide how to split profits. Has anyone been in this situation or know what some common profit splits are?

It is a very unique situation, indeed. I gave the option for % returned on investment or % of profit. They understand that the project may not make money and are willing to take that risk. 

I suppose I could rephrase the question to ask "Based on the commonly used 'interest rate' payment structure, what percentage of your profit do you end up paying private investors?" I understand that nobody really calculates it like this, but its worth a shot.

If they are participating in the profits and not charging interest, they will be more like a limited partner than a lender.  If you set it up as a partnership, normally, the limited partners (those who bring the money) would receive their money back and a preferred return on investment of 8-10%.  After that, remaining proceeds would be split between the general partner (you) and the limited partners.  This could be anywhere from 50/50 to 80/20 (80% to the LP's).