fair split on a 3 way fix&flip if you the person with the money?

[Dominique Flipping]

I guy I meet through a friend called me and ask me to partner with him and another guy on a house to flip. they have flipped several properties. This would be my first. they have found the deal and have done the inspections. I will be putting the cash up for down payment and rehab which would be 30k out of my pocket.  for a 40, 40, 20 split. I would get 20 percent. I think it should be split even? or would 20 percent be fair since I didn't do any work and will not be doing any work?

[Peter M.]

May be stating the obvious here but make sure it is in writing that your money is paid back first. The split has to be from the profit not the gross sale price. Otherwise you might end up losing money and their 80% is more like 90%. 

But look at it this way, if you put 30k into the deal, get that back after 4 months plus 20% of the profit (let's assume 20k profit after everything) that means you get $34000. That's a 13.3% return in 4 months. Or 39.9% APY. That's a pretty good investment for not doing any of the work yourself.