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Updated almost 8 years ago on . Most recent reply
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Newbie question regarding structuring with multiple partners
Good Morning!!! This is my first post and I'd like to, first off, thank everyone for their contributions to the forums...I'm getting so much amazing information. Second, I'd like to apologize if this is a repeat question, but I've been unable to find an answer to the exact situation I'm dealing with...but that may just be because I haven't dug far enough in the forums.
In the very near future, I will be doing my first deal/flip with a group of investors (5 of us in total). We will all be contributing an equal amount of money to the purchase and rehab of the property; however, I will be the "boots on the ground" partner doing all of the rehab work myself and subbing out anything I can't/won't work on. The other 4 investors don't want to take part in any of the day-to-day aspects of the deal (as they all have their own busy careers to deal with)...they are strictly in this to make money.
My question is, is if all 5 of us are contributing equal amounts of money to the deal, should we all get an equal share of the profit (i.e. 20%), or since I will be doing the "work" should I get a larger percentage of the profit? What have others done in this scenario?
Thank you in advance for any and all info you can give me. It's much appreciated.