Partnership compensation for acquisition and management

[Clay Alvord]

HI all!

My partner and I are lining up our first joint deal. He is providing 70% of the money and is leading the acquisition and management efforts as he already owns a few buildings. In addition, he is also showing me the ropes in the real estate investment world. We are using HomeUnion.com as our management company, and both of us have other jobs. 

My questions is what are some models for compensating him to acknowledge effort in acquisition and management?

[Eric P.]

@Clay Alvord He’s funding 70% & he has all of the experience & he’s doing the bulk of the work?! A 99%-1% split sounds about right here. Maaayybe 90-10% if he’s feeling super generous. Just cherish the chance to learn from him!