RE Partnership

[Adam Costello]

Hello Guys & Gals,

I've followed the information on this great website for several years and find this website to be very educational and informative. I was recently approached with an opportunity and am hopeful that I can gain some insight as to what a fair partnership typically consists of. I am a ten year RE investor with a long term hold strategy, however, I do flip a few properties per year to raise capital while accumulating my long term hold rental properties.

So, a wealthy individual approached me 3 or so months ago and asked if I would be willing to partner with him. He has the money, but not the time, as he owns several businesses that command all of his time. He said that if I would be willing to do all of the hands on work in our RE partnership, that I can use his money to invest. To this point, I've invested solely using private mortgages and have never partnered with anyone.

Btw, the profile of properties I buy are low income that generate an approx. 22 -24% cash on cash income ratio. A 50% split would give him half, which I am sure is significantly higher than he's getting with his safe $ thru his advisor. Just not sure if 50% is typical in a partnership such as this. Is 50% too aggressive on my part?

I am hopeful that some on this site can lead me to a typical "fair" agreement with similar partnerships. Thanks in advance for any helpful information!