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Updated about 9 years ago on . Most recent reply

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45
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6
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Benjamin Voorhis
  • Irving, TX
6
Votes |
45
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Partnership setup?

Benjamin Voorhis
  • Irving, TX
Posted

So I would love some advice from my BP community on this question.  My partner and I would love to start marketing and finding property to begin a flipping business.  My partner currently lives in Jordan, but has substantial capital and is willing to split the costs with me 50/50 for marketing and running the business, but also is going to fund 100% of the deals with his own money through my lender.  I would essentially be setting up the business, building connections, fielding calls, screening them, meeting clients, putting houses under contract and over seeing the renovation and sale of the property.  Given all this info, what would be a standard split of profits?  Im having trouble figuring out the split amount.  Thanks!

Most Popular Reply

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2,283
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1,102
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Charlie Fitzgerald
  • Lender
  • Las Vegas, NV
1,102
Votes |
2,283
Posts
Charlie Fitzgerald
  • Lender
  • Las Vegas, NV
Replied

How much would you want it to be if the roles were reversed.  When I'm the money partner I won't take less than 60% of the profits and I get paid before the non-money partners.  Normally, I'm going to be at 75%. If I'm the non-money partner doing all the work but have little to no capital in the partnership, I'm not working for less than 15% and normally will be 25-40%.

  • Charlie Fitzgerald
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