What is a fair profit split for this scenario?

[Patrick Boutin]

First of all thanks for reading this as I realize it is a bit lengthy. I just think this info is important in order to give proper context to my question.

What would be a fair profit split on a deal where i bring all the down payment funds, good credit and stable job?

My potential partner will not put any money but will put in his time as he is self employed (he is a RE agent), has a more flexible schedule and obviously RE experience although I suspect not with RE investors. In my case, I will expect to spend as much time as I possible (around my 8h FT job shift) so I can be on site the majority of the time while the deal is taking place. I don’t want to just be a “silent partner” that only helps with the funds and then just collects a check. Instead I expect to deal with contractors, materials purchasing, planning and anything else needed throughout the deal in order to make it a successful one. So I also expect to work on the deal. I just know there will be a mostly consistent 9 hour time slot where I may not be available on. I have even considered moving my regular work hours from 9am - 5pm to something along the lines of 12pm - 8pm during the duration of the project (I think the morning time may be more productive time for project related work).

I have very little experience in Real Estate other than some small properties I purchased out of state, the reading and studying I have been putting on BP since August of last year (studying J Scott's books and using the houseflippingspreadsheet to learn how to analyze deals). My potential partner on the other side has more experience with RE transactions given that he is a RE agent. As far as I know and like myself, he doesn’t have experience rehabbing or flipping properties and has only dealt with contractors whenever some of the properties he has tried to sell or purchase (for his clients) needed work in order for the deal to go through. His time flexibility in addition with his RE experience would prove very valuable for the times when I will not be able to be onsite as well as being able to view many properties, making many offers that could take time and maybe frustrate another agent.. I even thought as part of the partnership, he could be the listing agent once we are ready to sell the house back and have him not charge his part of the commission which we may offer in part or fully to buyer’s agents in order to help the house sell faster.

The reason why I ask this question is because I have seen numerous times in posts and heard in podcasts how partners would split the profits 50/50. But of course in most those cases someone always did all the time and work without putting any money while the other put all the money but didn’t put any time nor get involved with the property.

In our case that wouldn’t be the same because as I explained previously I EXPECT spend time in addition to my money. I want to participate in the decision making, planning, materials purchasing, dealing with contractors, etc… as I intend this to be a learning experience where I can do this around my job and not just "collect a check". I can’t quit my job and I won’t at this time (it’s a good job) but I do want to create and grow the capital I’ve saved over the last few years.

So going back to my original question: would it be reasonable to offer something like a 65/35 or 60/40 to start instead of 50/50? I hope I don’t sound greedy as I mostly want to be fair. My thinking was that this way could work until he has some capital saved up and maybe then is able to assist with the down payment on a later deal and then at that time then do it 50/50.

What are your thoughts on this?