BP OPINION ON DEAL SPLITTING

[Craig Clark]

Hello Everyone, I was hoping to get the community's opinion on a partnership split for an upcoming deal and all opinions are welcome.

One of the realtors I work with approached me about doing a flip together along with her husband and I really want to make sure the deal split is done as fairly as possible. The deal itself is one that I found and agreed to use as our first flip.

Details.

Purchase Price: $95,000

Estimate:1

$65,000 rehab - leaving an ARV of about $280-300k

Estimate 2:

$90,000 rehab - leaving an ARV of $350k +/- (obviously this is what we will shoot for.)

My dilemma here is the property will be 100% owned by my company and I will secure 100% of the financing, down payment, and rehab. My realtor will handle the sell and her husband and his team would do all the rehab.

If this was your next deal, what would you consider an appropriate percentage split of the profits (the rehab would not be done at cost and my realtor will get commissions on both ends of the transaction?)