1st off-market deal! Need help with fair profit split w/ partner
What is a typical split in a partnership deal where one party found the deal, another (me) will fund around 90% of the acquisition and rehab, and a GC is being hired to do the most of the rehab work?
My deal finding partner is unable to contribute much financially but may be able to fund about 5-15% of all the costs. She has absolutely no real estate investing education or experience. Her husband is interested in doing some of the rehab work under the GC's direction.
I would fund the remaining 85-95% of the project. I'm also using my network, education, and minor RE inv experience to help as I can, such as getting referrals for GCs, Title CO's, Attorneys, etc. I've also REALLY been wanting a rehab to learn from so I plan to learn and observe as much as possible (and contribute if they'll let me).
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So she pretty much just found the deal. I would offer to pay her an assignment fee and just purchase the house myself.
If you are looking to network and establish a relationship for the long term, I would consider a 70/30. What does she bring to the table? 10% and a husband working a $10/hr job. Assuming 100k all in price and 150k sales price, your partner provides 10k plus her husbands time and receives 15k profit in return. That's a 150% return.
I would make sure your contract outlines responsibilities. Best of luck.