How to make successful partnership

[Zach Barber]

I’m building my Realestate portfolio right now at a decent pace. I’m looking to leave my day job in the next 2-3 years to focus on doing this full time. I’ve heard that it’s difficult for self employed workers to get loans. So my brother is thinking about being my partner just for the loan applications. He won’t have his hand in any other part of the business besides putting his name on the loan. I’m wondering what percent of a deal is fair to give to him?

[Allan Smith]

First, I would push to compensate him with cash flow or an upfront fee before making it complicated by sharing ownership.

However, if he signs the loan and invests no cash, I'd say push for 25% ownership, and walk away if he wants 40% (unless you are really desperate).