Just seemed to me that 50/50 split wouldn't be all that appealing.
I have to strongly disagree with @Tim Delp . An investor shouldn't care, (nor should a buyer of a wholesale deal, although they often do) what the split is. What is important to the investor is what is his or her return for a given perceived risk vs. what other investment opportunities are available to them.
I would not take a 50/50 deal because I can find and manage deals as well as you can. However your neighbor may feel his next best option is a bank CD at 3%. If the neighbor perceives you as an expert and looks at real estate as a good and relatively safe investment they may choose to invest with you for a 4% return. They may be thinking more in terms of long term appreciation and tax advantages.
On the other had they may think investing with you would be high risk but they have some high risk money available. and would want a 25% return. The bottom line is your cut isn't important. What is important is what they get out of the deal and how it fits their needs.
Bill Gulley . . . I'd love to see you . . .comment on it more!
Bill Gulley has 8,000+ posts. You want him to comment more? LOL
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/