50/50 Profit Split JV Agmt - Should funder ask for loss allocation

[Frances Regalado]

Hi,

I wil be the potenital funding/money partner for 50% of profits on a flip.

I've asked for the other partners to assume 50% of the loss if the deal goes south and to write this into the JV. They said they've never done this before. They will be the project manager and investing their time for 50% of profit; however, they don't have any skin in the game in terms of actual cash.

Is it normal for me, as funder, to ask to have a loss allocation written into the document? Should I assume a first loss position up to a specified amount? What's typical? I would appreciate your thoughts. Thanks,