Funding Partnerships and profit split

[Abhra Mukherjee]

What kind of profit ratio split is the norm or fair when you have a funding partner? So if they put the money towards purchase of a property but you do all the work, what would be a fair profit split? Would love to know your thoughts. 

[Jon Crosby]

@Abhra Mukherjee I would still say 80/20. If you are not putting any money in then 20% seems like the standard rate for you sweat equity. If the investor is comebidy your close with and greatly trusts you then maybe you can get as high as 40% but if it’s your first deal together and you want them for further deals you should make it as sweet as you can for them.