Estimated Partnership Split

[Jon D.]

here appear to be a lot of discussions about partnership/JV splits when 1 party is all money and the other party is all sweat/brains.

I'm curious about slightly different split of finance/equity and I'm also referring to buy and hold (not flip) cases.

Fact Pattern:
-Party A: Currently owns properties, property management experience, wide network of subcontractors/maintenance, good at valuing improvement costs, realtor license, etc.

-Party B: Finance and strategy, some legal. Creative in tax structuring, creative in loan financing markets, and can likely get better value out of the credit markets.

Let's say Party B is sole party on the mortgage at 80% LTV in each circumstance. Party A has a right to retain property management fee at 9% or can choose not to and hire a separate one at whatever cost. No expectation of sweat equity into improving the place. Repairs, etc. all hired out.

Now

Party A puts 10% of the 20% downpayment into the situation, how much equity split do you think there should be?
Party A instead puts 15% of the 20% downpayment into the situation, how much equity split?

20%?

5%?

Feel free to just answer on those 4 scenarios without elaborating. Elaborating more is appreciated.


Presume that the equity/profit split is after mortgage payment/payoff as well as property management and all expenses. I also realize that some lenders require part owners above certain percentages of ownership co-sign the mortgage... presume that isn't an issue in this case.

Lastly, I get that most fix and flip have more even splits while buy and hold investments often result in the question of why the mostly money person needs the other person at all, but in this case with the money situation bifurcated I'm curious as to how to best handle.

Thanks