How to split profits in a Partnership

[Keith T Williams]

I have a partner who I will be investing in my first flip with. How should we divide the profits if 1 partner is investing more than the other. For example If Im investing 20k and he's investing on 13k. How should we divide the net profits? Is there a specific formula? 

[Joe Villeneuve]

So what you're saying is, and I'm assuming this since the only thing you mentioned was the cash being used, none of the following was or will be performed by either partner:

1 - Market analysis
2 - Property Analysis
3 - Presenting Offer
4 - Negotiation
5 - Closing
6 - Property Management
7 - Partnership Management
8 - Rehab
9 - Rehab Management
10 - ...and more.

In other words, there is more to a partnership than just the money used to buy the property.  Not every task/role/responsibility is equal, but not every one of them can be equal to 50% either.