is there a guideline percentage for partnerships??

[Doug Silverman]

I have a partner who is putting up all the cash...I am finding, managing and selling the properties...what is the standard percentage for each partner in this case...I was thinking 60 for him and 40 for me....is this fair?? thanks

[James Paine]

@Doug Silverman  If you are new at this 60/40 is fair.  

Once you get more experience you can work different deals.  

EX1: The Fee Deal 

This deal is best if you have a large team or overhead you have to pay.

1%-2% Acquisition Fee

5%-20% Construction Management Fee

1%-3% Disposition Fee

30% of profit after fees to you

70% of profit to capital partner

EX2: Preferred Return Deal

This deal is best if your capital partner wants a consistent return with some upside and/or if you think you have a smoking hot deal. 

8%-15% Interest payments on your partners capital investment (paid when the deal closes)

60%-80% Profit to you after Interest (Preferred return)

20%-40% Profit after Interest to your capital partner

EX3:  The Simple Deal

This deal is best if your capital partner is not sophisticated. 

50%/50% Split of profits

0%-2% Listing Commission (If you are the broker)

I've put together dozens of partnerships.  Above are a few easy examples.