Partnering up questions

[Sunny Sopapunta]

Hi all,

I am just starting out and doing some research before I dive in to buying real estate. My question is if you're doing long distance investing with a partner who is in the area you plan on investing in, how do you work out the partnership split? If you provide the money and deal analysis, while they are boots on the ground and knowledge of the area?

[Joe Villeneuve]

Take every task or job role that the partners will be doing and list them one by one.  Then, by yourselves, apply a percentage to each of them, then total up the percentages...keep in mind the total can't go over 100% (don't laugh...I've seen as high as 150%).

Then group together all the roles each partner will perform, and the total sums will be the end result percentages for each partner.  If the total comes out to be over 100% (again, stop laughing), then divide 100 by the percentage sum you got, and take that percentage and multiply each task by it.  The result will total 100% and will be the actual worth for each task...and the sums for each partner.