How should I my partner and I split this deal???
Hello All,
A silent business partner and I just signed a 5 year master lease (with an option) for a duplex in which we be paying $1200/month to rent from the owner and we will be subletting for $3300/month. Some specifics:
*We were required to put down $12k in option deposit monies and also an additional $7500 for security deposit and some improvements.
*The $12k came from our company checking account (we have another rental together) and the $7500 came from me.
*I found the deal and will be managing all aspects of it. He is 100% silent.
*My partner did contribute 1/2 of the option money (6k) via our other rental property investment proceeds.
*Our LLC signed the lease, which he would be responsible for as well (FYI, the LLC only has 1 property in it, which is currently 40k under water, so essentially has no assets).
Looking back on it, I easily could and should've done this deal on my own. But it's too late for that.
My question is this: How should we split the cash flow? I have asked 3 people I respect with knowledge of the situation. 2 out of the 3 said I should get 75% and my partner 25%. The other person I asked said that sounded like a little bit too much.
I want to be fair to myself and to him and that's why I would love some unbiased opinions.
What say you?