Fair share with financing partner

[James R Dean]

I have a couple BRRRR's and am looking to partner with another investor that is not interested in day to day dealings. She has experience but is older and is looking to slow down some. If I find deals and run the property management part, finding tenants, managing property, etc., and she would finance the down payment and the loan is paid by the house, is it normal to assume a 50/50 split of profits or what would be a fair share in this case. I am doing most of the work, and they are providing all of the money. Basically, Investor brings the money and I bring the deals and manage the property with a tenant-in-kind title on property. That way we are not technically partners I believe and don't have to share a tax return I understand. I have better deals than I can afford at this time. Thanks in advance. Other choice is to just borrow from this private lender and not split the profits.

[Joe Villeneuve]

If you give out 50% to someone that just puts up the DP, I'll meet you tomorrow morning with cash in hand.

Take all the jobs/roles any of the partners must do, and apply a percentage to each based on the relationship/value to eachother.  Now assign each of these roles to each partner.  Total up the percentages for each partner.  When (not if) the sum of all the totals is greater than 100%, take 100 and divide it by that total you just came up with.  Now multiply each of the sum totals for each partner by that number, and you have the end percentage each partner should be getting.

The percentages are not just 50/50 because you have 2 partners.  The end percentages each partner gets should be based on all of the job/roles each partner plays in the partnership.  To do that, you have to assign values to each of these roles based on each role's relationship with each other role.

...and, this other investor isn't supplying all the money.  They're just supplying the DP.