How to construct a partnership deal?

[Molly Krief]

Hi BP Family,

I have an investor out of state, looking to invest with me. Now, he is not an expert about real estate investing although he had invested in other markets in the past. 

He is a far family member, so i know he has some trust in me.

But i am wondering how to construct the deal so it will benefit us both.

He wants to put up about $100,000, to buy a house. we (me and my husband) can put in the cost of the repairs, and project manage the operation. getting the contractor, designing the house and making sure everything is running smooth, wile he is not physically involved.

Now, me and my husband would probably need to get a hard money loan in order to pay for the repairs, probably 40-70k depending on the property we perches. 

How do we split the profits? 50 50?

A different case scenario, is if we have him put in all the cash for the purchase and repairs, let's assume around 150K. and we continue to do the same as before, meaning managing the project, finding the deal getting the house sold and so on. how would we split the profits? Or would we get a salary? or a smaller percentage?

Help!!!!!

I might be making this more complicated than it is, but its my first time having a partner so i have no idea.

And just for the record, this investor is totally counting on me to bring him the details of this partnership, so i cent really ask him what his conditions are, he is inexperienced in this situation a wall.

I would appreciate any insight you guys (and girls) can bring to my situation,

thanks,

Molly

[Aaron Morris]

There is a great class through CCIM about splitting profits. There's a million ways to do it. It would matter how much work you're doing. If you've never done improvements before be careful with hard money. You can end up over your head very quickly.