looking for particulars about how partnerships work

[Mead Vest]

Hi there! I have been listening to many different BP podcasts for about 4-5 years now. I have 8 long-term units, 3 mid-term units. All are local to me in a non-vacation rental spot. Most are SF. I have never posted here. I would be interested in some input into realistic terms for partnerships. I keep hearing on podcasts when they talk about partnerships.... 'well it depends'. I totally understand that it depends but I think what I am looking for is a bit more input and guidance. For example if one partner brings the 20% down payment and the other will do the labor for renovations then what would be a reasonable split be. And does the person doing the labor get paid or only the materials paid for by the partnership? And does the 20% get paid back? What if partner A brings down payment and partner B will act as the contractor but not do any of the work themselves. So all labor and materials are paid out? What if A brings downpayment and B will manage it and minimal rennovations are needed. How many years managing is equivalent to the benefit of the 20% down? Really what I am trying to figure out is what is the ratio of value for the various things that different partners would bring to the table like: down payment, long term management, rehab labor, acting as contractor for rehab but not doing the work yourself. And then also do you typically repay each partner their upfront costs from the profits before then distributing profits? A candid interview with 5 different sets of partners talking about their specific terms as far as responsibilities and costs would be a great show. 

[Jonathan Greene]

Tony Robinson and Ashley Kehr have a BP book on Real Estate Partnerships. That might be a good place to get some background on all of the options.

That split model never works. One is the cash downpayment and one is the work. I have done that model and the work always overchargers and overreaches because they are there all the time. Basically, flip partnerships suck unless you spend a long time being clear about the roles and payouts, etc.