Hi there everyone. I've been around the forum and listening to the podcasts for a while now but this is my first post. A little about me...Bought my first bank owned foreclosure about a year ago and renovated it myself from top to bottom. Kinda consider it a practice run to start flipping houses in my area. I have a considerable amount of equity in my home and my best friend of 30+ years is interested in putting up a substantial amount of money to be a silent partner. We've talked about roles in the project and writing a contract between us but neither one of us is sure the fairest way to split the profits. I have the real estate and construction knowledge and he has more money so it's a mutually beneficial partnership. Anybody have advice as to what percentage of money he should put up to make a 50/50 split fair? Any and all advice is welcomed and appreciated. Thanks in advance!
With you doing the labor as well these are difficult to assess as it can lead to disputes later on regarding value of rehab if the deal does not go well. I recommend providing a preferred return to the funding partner.