Roles w/ Business Partnership

[Zach Hawrot]

I have a business with two other partners. All of us have invested an equal amount of money as well as time. We have a handful of properties now where our strategy is to buy, fix up, and then rent the property. 

My question deals with how to compensate the roles each of us play. For simplicity sake:

Partner A finds and negotiates deal.

Partner B is project manager, handling all tasks needed to get property up to date.

Partner C is property manager. 

Currently, any time spent working within our role isn’t compensated and that’s what we are exploring now; we’d like to create a system where instead of all of us trying to put equal hours into it, it makes more sense to pay each of us like we were hired for a business.

Do any of you recommend a system for getting this done? Would it be as simple as logging the hours spent working each task, whether it’s sending out mailers, making a Lowe’s run to fix a broken door, or interviewing potential tenants? If so, do all tasks get the same rate as the next?

I believe the answer to this can either be simple or creative, which is why I figured I’d throw it out here to see if anyone has any good systems that has worked for them. Thanks for the time!

[David Avery]

Any partnership needs to develop a cost per hour such as $30.00 per hour that all three of you agree on.

Keep track of your honest hours and hopefully your partnership will continue to work.