Note: The numbers are not real, they are only for illustration.

First of all I'm glad I found this site, it is really interesting and helpful.

In short:

We bought a house for 200,000 to flip it. We are 3 partners. The bank gave us a 50% mortgage, i.e. 100,000. 1st person put 25,000, 2nd 50,000 and the 3rd 25,000.

We agree that each of us put the same effort in the deal, so how much each of us contributed is not the issue.

I thought that for the calculation of the profit we will consider the money of the bank as it equally belonged to each partner (i.e, 33,333 each). Adding this to the money each one invested gives that the 2 person that put 25,000 deserve approximately 30% of the profit and the person that put 50,000 deserves approximately 40% of the profit.

On the one hand it sounds like it maybe unfair (for the parter that put twice more than the others) but on the other hand the mothod of splitting the profit looks fair according to the fact that we are partners with equal rights.

I will be glad to hear your opinion about my plan and If you think it should be different I want really to hear why.

There is another option that is more favorable for the person who put more money, but in my opinion is too favourable. In this method the profit should be calculated only according to the investment of each person, i.e. the person who put 50,000 gets 50% of the profit and the other 2 get 25,000 of the profit.

There is a third option that is the combination of the other 2 options that is to make a percentage of the money of the bank as it was equally belonged to each partner and the other part according to the percentage of each one invested.

Thank you for reading.

Your answer might be really helpful for us. My main goal here is not to make a profit slplitting plan only for this deal but for all the deals we will do togeather in the future, and for that reason I take it really seriously.

Thank you for your help in advance.