How Are You Structuring Your Partnerships?

[Zach Kirkton]

Hello, I'm a wholesaler and have a few of my own LTRs, but have recently been talking with a buyer who've I've developed a solid relationship with about partnering on some properties/portfolios instead of wholesaling to him. I understand partnerships can be structured however you and your partner(s) deem most appropriate, but if I'm not bringing any money to the table, but am finding the deals through my own marketing dollars and negotiating prices, what would you think is a fair split in rent profits and profits of the future sale of the properties? Is 50/50 too aggressive on my end? I'd love to hear your thoughts and how you have succeeded in structuring your partnerships!

I could break this down even further, we've been looking at a 3M portfolio with potential to buy another 4M, again, I wouldnt be bringing any money. Do you think 90/10 is too lean on my end or fair considering the size of the purchase?

How about one off properties or a couple, with prices ranging from 60k - 250k? Maybe create a separate LLC with a more even split?