Using partners on deals

[Osama Mayassi]

When investing in a property using a partner, how do you split the ownership/equity in the property if the other partner provides all the cash while the other partner provides all the knowledge and hustle?

Please give your reasoning for your answer. I want to know how to negotiate with my partner.

Thank you for your response!

[Seth Ferguson]

A typical JV is 50/50 if one partner brings the capital and the other manages the asset. This, of course, varies based on the situation. One thing I do see is the operations side often taking less than they should because they don't realize their value in the equation.