All Forum Posts by: Jimmy Harris
Jimmy Harris has started 1 posts and replied 4 times.
Post: Partnership Profit Split
- Flipper/Rehabber
- Carrollton, GA
- Posts 4
- Votes 1
Quote from @Eric M.:
Quote from @Jimmy Harris:
Quote from @Sean O'Keefe:
Quote from @Jimmy Harris:
I have a partnership with a partner where we are 50/50 owners of several rental properties. We have taken out a LOC on the equity in our rentals to fund flips. I will find the properties to flip, manage the contractors, handle the accounting and most of the day to day activities for the company (until we can scale up). What is the normal profit split on this type of partnership?
Curious why you feel it is a 50/50 split when we both have equal equity in the deal, and I would be doing all the work?
You are right, it is not 50/50 based on what you describe. It would be 50/50 if you were doing all the work and partner was providing the funding.
Obviously the "right" split is the one you both feel comfortable with but in this scenario, he is taking only half the financial risk and doing none of the work. I would think it would be more like 75/25 or 80/20 to you after the interest on the LOC.
This is free money to him with no out of pocket. Assuming you aren't going to do something crazy he has little risk
Thanks for the info. I had the same numbers in mind. The 75/25 split seems fair to both sides.
Post: Partnership Profit Split
- Flipper/Rehabber
- Carrollton, GA
- Posts 4
- Votes 1
Quote from @Stephen Gibson Jr:
How do people usually find partners? Any suggestions on how to go about this? I'm looking for small multi family in Philadelphia.
Bigger Pockets is a good starting point. Join REI Facebook groups specific to your region to meet local investors who may be looking for partners.
Post: Partnership Profit Split
- Flipper/Rehabber
- Carrollton, GA
- Posts 4
- Votes 1
Quote from @Sean O'Keefe:
Quote from @Jimmy Harris:
I have a partnership with a partner where we are 50/50 owners of several rental properties. We have taken out a LOC on the equity in our rentals to fund flips. I will find the properties to flip, manage the contractors, handle the accounting and most of the day to day activities for the company (until we can scale up). What is the normal profit split on this type of partnership?
Curious why you feel it is a 50/50 split when we both have equal equity in the deal, and I would be doing all the work?
Post: Partnership Profit Split
- Flipper/Rehabber
- Carrollton, GA
- Posts 4
- Votes 1
I have a partnership with a partner where we are 50/50 owners of several rental properties. We have taken out a LOC on the equity in our rentals to fund flips. I will find the properties to flip, manage the contractors, handle the accounting and most of the day to day activities for the company (until we can scale up). What is the normal profit split on this type of partnership?