Need help with 50/50 partnership deal!
Hello,
I have a partner who is funding 100% of the money, and I do the rest, one for flip and another one for long term hold, but for furnished mid term rental.
As for the mid term rental, we did 20% downpayment, and the construction has been delayed so he is paying the mortgage for a few months without making any profits for now, and we are projecting the job to be finished next month.
Is this something he should cover 100% until the property is ready to make profits? Or should we do 50/50 on this?
Ias for furnishing, I usually go with my wife and furnish it all ourselves.
does he have to cover all the furnitures? And what about our labor? Do we have to do it for free since I’m the one supposed to put the work in, but I could’ve hire some people to furnish the unit as well.
It really gets complex where is the line that we should pay 50/50 from which point, please help me out!
Most Popular Reply
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
I’d say you’re managing for free at least until he’s paid back. But really you should hire professional managers. What if you screw something up and cause a loss or a lawsuit? There’s no advantage to paying you the same amount a pro would charge. And it’s not worth your time to do it for 1/2 of what a pro would charge.