Working with a business partner

[Patrick Meucci]

I am new to the real estate investment world and I'm hoping to get feedback from people who may be in a partnership where two partners bring different strengths to the table. I am looking to pitch a business plan to a potential partner who is very skilled in fixing properties and currently works as an electrician. He was a part of almost every renovation I did to my first condo. In this arrangement, I would bring financial funding, as much assistance in renovations that I can (no where close to what he can bring), recruiting/maintaining renters, and taxes/financial work (including managing accounts for cap-ex, mortgage, etc). The potential partner would manage the majority of the renovations from a labor standpoint and provide some sort of financial funding (no more than 30%). Looking for insight into...

1. How much of the financial funding each party provides (either financial partner provides all of it or there is some percent split of capital coming from each partner)

2. How profit is distributed to each partner (financial and renovator) from both an equity perspective and a cash flow perspective

3. Any advice you have from experience in a partnership such as the one described

I appreciate all responses and thank you for taking the time to provide input.