Partners - determining who brings more cash

[Brandon Archambault]

Hello everyone, first time poster here. I have a modest 11 unit portfolio myself and am looking to start investing with my (unmarried) life partner. We thought the best way to do this would be to start and LLC together 50/50. We now need to determine how much each of us will bring to the closing table for our first property.

The situation: I am in part time commission only sales role and am a RE broker. I have time to source deals, walk through the properties, do broker activities (like write many offers), handle the financials, do the admin work, manage the loan process, renovate, and manage the property. My partner has a very demanding job and is a high earner. She's looking to be more hands off, but doesn't mind painting or helping with the reno. 

My questions is how do we decide how much cash each of us brings? I'm sure my time and expertise is worth something, I'm just not sure what. It's also important to me this is mutually beneficial to both parties. I'm open to hearing your thoughts and appreciate any advice you may have.

Thanks in advance!

[Marc Winter]

@Brandon Archambault,

Love is a beautiful thing.  So is business, when conducted well.  Each one is simple, but not easy to grow.  Mix them together and seldom will either blossom.  

You have all the real estate expertise.  Your partner has a demanding job outside of real estate.  Who do you think will be doing most of the heavy lifting?

You want to make a 50/50 LLC partnership?

From personal experience I can tell you it's all fun and giggles until stuff goes sideways.  Then you not only have a business (partner) problem, you've also messed up your love life.

I'd think long and hard before trying to decide 'who brings what' to the table, or if you really want to sit at that table at all.

Not saying a life partnership and business partnership (as you are describing) can't ever succeed, but the odds are not in your favor.