How to properly split profits in a partnership??

[Ryan Fisher]

How should you split profits to keep everybody happy?

Looking to go into a deal with my two partners (sister & father), who both have the cash and have both been wanting to get into multi-family investing.  The deal is a 4-unit multifamily apartment building that would net us $1000/month immediately, after factoring a conservative estimate of espenses.  This is in Cali, as everybody knows is very tough to find cash flow properties in good areas!!!

Would require approximately $100,000 initial investment (down payment, closing costs, repair).

I proposed this split with the initial investment as follows:

Me:            20%

Partner 1:  40%

Partner 2:  40%

With us all splitting profits equally at 33%.  They think I am getting to much in return even though I have done all of the work to analyze and basically hand this property to them.  Am I expecting too much, or do they have a fair point.

Would greatly appreciate the input...

[Larry K.]

Consider doing a debt deal with them. Let theme be private lenders in first position. Possibly 8%?. Get the place rented and stabilized. Get long term loan from a bank and pay them back. They should leave happy bc who else can give them that on a securitized investment. Then you are the only owner and you just deal with the bank.