Structuring the first partnership

[Roxy Blu]

Hi, 

I am looking for thoughts on structuring a partnership on a short term rehab with my brother.  Until now I have been doing rehabs by myself but I am looking to grow and realize the benefits of partnerships.   

The responsibilities would be divided as such:  

I am an agent so I will find the property and sell it. 

I will be in charge of all design specs.  

I will be provide the 30% down payment along with any of the remodeling costs.

I will provide some sweat equity.  

My brothers responsibilities will be:

Carrying the loan and managing the project. 

He will be providing the majority of the sweat equity.  

I understand that the more we clarify the mechanics in the beginning the less gray area we will face in the future.  Any help is greatly appreciated and well received. Thank you! Roxy 

[Jonathan Godes]

So it sounds like you are finding the deal and putting in 50% of the funds and your brother is managing the rehab and putting in the other 50% of the funds? As long as the money from the commissions saved on your part and your bother's GC charges are either a part of the deal OR both kept out of the deal (that sounds like it would be pretty much a wash either way) then this seems like a slam dunk 50/50 partnership to me.