Question on partnership

[Jennifer Farnsworth]

Hello All- 

I am looking to partner with 2 investors on purchasing a 8 plex. My question is what would be  a fair percentage to offer? This would be our first deal so I want make sure everyone comes out good! 

Thanks in advance for any advice!

Jennifer 

[Joe Villeneuve]

I'm guessing you are running into a big problem with the other two investors...I bet all three of you want 50%, which is fine, as long as the rules of math change...which they won't.  I'm also sure that both of your partners rationalize their 50% as justified because the deal wouldn't happen without them...and they'd both be right, which leaves you with 0% (if my math is correct).  The partners with the $$$$ always overstate their importance.  I'm not trying to understate it, just trying to rationalize a real number where all partners involved have their %%%% balanced in a reality of how much for how much, as in how much $$$$ for how much importance.

With that in mind, I have a simple (and completely logical,...and NEVER questioned) method of determining partner %%% breakdowns:

1 - List ALL of the roles and responsibilities for ALL of the partners (don't assign any yet, just list them).
2 - Assign a number from 1 to 10, with 10 being the more important than 1, for each of these R&R.  The number is based on the relative value compared to the other R&R in the list...so you can have more than one occurrence of each number.  IF you want to make them all 10, you can, but that's not realist.
3 - Add up all the numbers.
4 - Now assign each R&R to each partner based on which R&R they will perform.
5 - Add up the numbers in #4 for each partner
6 - Now, divide 100 by the number you got in #3 above.  This is your R&R factor.
7 - Multiply each number you got in #5 by the number just got in #6.
8 - The resulting numbers in #7 are the percentages each partner gets.

There's nothing to argue.