How to properly split profits in a partnership??
How should you split profits to keep everybody happy?
Looking to go into a deal with my two partners (sister & father), who both have the cash and have both been wanting to get into multi-family investing. The deal is a 4-unit multifamily apartment building that would net us $1000/month immediately, after factoring a conservative estimate of espenses. This is in Cali, as everybody knows is very tough to find cash flow properties in good areas!!!
Would require approximately $100,000 initial investment (down payment, closing costs, repair).
I proposed this split with the initial investment as follows:
Me: 20%
Partner 1: 40%
Partner 2: 40%
With us all splitting profits equally at 33%. They think I am getting to much in return even though I have done all of the work to analyze and basically hand this property to them. Am I expecting too much, or do they have a fair point.
Would greatly appreciate the input...