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Updated over 3 years ago,
Dividing cash-flow between silent and hands-on partners
I'm looking to partner with someone to purchase my first property to BRRRR about two hours from where I live. My partner lives close to the property and will manage the renovations and property once rented. We are going in 50/50 and have agreed that we own 50/50 of the equity however, we need to figure out how to manage the cash flow. Since my partner will be doing all of the hands-on work, how do we go about dividing the rental returns? What percentage should the hands-on partner get compared to the more silent-partner (me)?