50/50 Partnership Split with a Management Fee

[Zach Whitt]

I know this has been asked, but I have a few important variables (management fee, inexperience)

This is a buy and hold single family home(s) partnership.

I have a partner who invest only cash, and I will do the work + invest cash. We will co-borrow on the loan.

I'm relatively inexperienced so he wants 50/50 on the money invested for a 50/50 split of the equity. I would take a management fee for the ongoing property management and possibly for finding and doing any necessary renovations.

With more experience I can most likely do better than this, but until then how should I structure the management fees so I'm not getting a raw deal? Or should I find another partner?