What is a fair percentage for this partnership?

[Megan Broom]

Our team currently works with private investors flipping, wholesale deals, etc.

I recently had a friend refer an investor/funder to me who agreed to match my other equity partners with a 50/50 split on the net.

Now, my friend is requesting a 50/50 split on my profits. I have a partner and several employees working to do the type of deals we do. I am working 60+ hours a week and have my own expenses associated with getting deals, analyzing deals, and executing deals. The reason I am trying to work this out is because the investor has a fund of $30 million dollars to flip properties, buy notes, buy in bulk, etc. However, they will of course start with a few deals so I do not want to give up half of my profits to my friend when I have other investors to use.

My friend is going to be doing no work, so essentially he just brought the fund to me.

Thank you for the advice!!

[Jason D.]

This is brokered money. The typical payout by the operator on a brokered deal that is a Joint Venture is two points and the broker is out of the picture.

Because he's your friend you might consider a residual of 5% of your net profits (maybe 10% but no more than that if I were you).