Fair equity split for a local landlord?

[Gary Dezoysa]

Hi all,

As a remote investor I've decided I do not want to use property management companies. I would rather do one of two scenarios:

1. I find the deal and bring half the down payment. A local partner brings the other half and manages the rental

2. I find the deal and bring the entire down payment. The local partner manages and applies for the residential loan (on a 2-4 unit MFH).

Are these situations roughly even in terms of contribution? Or would you say one partner should get more than 50%? I am looking for general guidance on how to determine a fair split; this information seems hard to come across frankly.

[Nathan Gesner]

The first scenario sounds good, the second does not. There are many ways to skin this cat. Starting out, a 50/50 split on money put in and money pulled out seems to be the best solution. You can refine value and splits after you've got some experience with your partner.