Advice on partnership structure for a flip
Looking for some advice on how others have structured partnerships that are not so clear cut as those who bring 100% labor or 100% money. For example, we have three partners:
Partner A: Downpayment + Bank Financing for purchase + All work associated with finding, design plan, project management, and selling property
Parter B: Some cash for renos + On-site construction management
Partner C: Majority of cash for renos
What type of partnership agreement would you recommend for this type of arrangement? The short-term goal is to complete a flip, and the long-term goal is to have a property development company with an investment fund for other investors to invest cash in our projects.
How have others determined a "fair" compensation for those who put in the sweat equity (Partners A & B in this case)? I've heard that some determine a set % for "operators" v. "investors" and then divide accordingly, where some partners are acting in both roles. What does a typical distribution of profits look like for these types of partnerships?
Anything else I should be thinking about?
Thanks for the suggestions!