whats best 40/60, 50/50, or 25/75 when starting out?

[Matthew Oakes]

Ok so lets be realistic, obviously new investors or amateurs aren't going to be able to get professional investors to give a majority profit on new ventures , but what is the best way to start a partnership percentage speaking? And then when should the partnership be restructured, after X deals, after X time, or after X amount is made? 

I've currently locked in a partnership with an experienced investor, but I know I will be providing more value after I have learned more about certain deals and lending. What I'm looking to know is if I'm finding the deals but they have the money and know how (which seem to be easier to obtain), what should the profit split be when starting out, after a few deals, and then 2 or more years later?

[Theo Hicks]

In partnerships where one party is finding the deal and the other party is doing everything else, the deal finding party is usually compensated with a sort of finder's fee. If the deal finder were to receive equity in the deal, it would be a maximum of 20% (15% is more likely).

That said, if you are interning for this experience investor, a salary is also another option.

The increase in your compensation will be in the experienced investors' control. Sure, you can ask for more, but it is ultimately their decision. But, I wouldn't expect an increase for a year or two. Think about it from their perspective: if they are an experienced investor, they've seen many "new investors" come and go. So, they will want to know that you are serious and in it for the long haul before they start giving you equity in the deal.

Honestly, if I was in your position as a new investor with no experience who found an experienced investor to partner with, I would be less focused on how much money I will get paid in the short-term and more so on how I will use the experience I gain to make exponentially more $ in the future. 

I'd accept whatever he offered and get to work.

(All of this is assuming you have minimal experience and this other person has been investing in real estate successfully for years. If you are on similar levels, then my advice would be entirely different).