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Updated over 4 years ago,
How to split profits on house flip?
We are a little new to this so I was curious on how profits would normally be split. Haven't bought a house yet but still writing up the contract. Without one one another, we would not be able to complete this project. Here is a quick summary of what everyone brings:
Partner 1
-qualifies for the home loan
-25% down payment of home loan
-20% work on the house (little knowledge of construction and will learn from partner 2), works part time
Partner 2
- 80% of the flip construction, working full time
-finds the deals with realtor friend
-25% down payment for home loan
-15k investment for repairs
Partner 3
- 50% down payment for home loan
- 15k investment for repairs
- will keep track of all receipts / costs
Any advice would be helpful. It seems that partner 2 should get paid the most then partner 1 then partner 3. But how much is the question. Thank you.