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Updated almost 6 years ago,
Splitting returns for dual partnership?
My brother and I going to invest in buy and hold rental properties and we are deciding on a fair deal how to split ownership given that one partner is completely passive. The other will be doing all of the work (finding +vetting deals, closing, dealing with all day to day maintenance, etc.).
What we are thinking to do is split everything evenly: down payments, closing costs, rental income (after expenses), capex costs, ...etc....
Additionally, the one that is doing the work will have a 55% share of equity and the passive investor will have 45%). This would be the compensation for the efforts.
Thoughts?