Deal Structure For Partnership

[Greg Junge]

Hi BP,

I've been on here for a while and love the community and chime in from time to time. I do want to post more and be more active on here because my goal this year is to transition from Full time Realtor to full time investor, or at least shift my percentages to the investor side.

I have been a buy and hold investor in Phoenix since 2012 and it's been great, but I've only seen the upside of the market cycle, which I am well aware of.  My goal is to use my realtor skills and expertise to buy sfh's with partners and use their money for the down payment, so it's no money out of my pocket.  I'm looking at other markets where the cashflow and appreciation are both present, mainly markets in florida, but that's not why I am posting.

Has anyone put together a deal structure where my business partner puts in the down payment and is on the mortgage, and does nothing else, while I find the deal, find the property manager, manage the PM, set up the bank account, and I'd be on the mortgage too. 

For example, we buy a 120k house, my partner puts down 30k, we are both on the mortgage, and I would manage everything and my partner does nothing else.  My question is, what would be a fair split of ownership for this type of deal? I know it's not a black and white answer, but just wanted to hear opinions on what people think is fair, or if people have done this before, what split did you work out? 

Any thoughts are appreciated and if @Jay Hinrichs would chime in, since I know he has creatively put together deals in the past.

Thanks in advance BP!