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Updated about 9 years ago on . Most recent reply

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2
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0
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Mike Bass
  • Rental Property Investor
  • Oklahoma City, OK
0
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2
Posts

Partner Split percentage?

Mike Bass
  • Rental Property Investor
  • Oklahoma City, OK
Posted

I have an opportunity to partner with someone I trust, who is dependable, does really good work, and has all the skills that I do not.  He's been a contractor / superintendent for 15 years and has the skill set to do probably 90+% of the type of work you'd see on a typical flip.  I can do a small percentage, but he is definitely the more skilled person.  Plus he owns all the tools, truck, trailer, etc.  

I'm able to provide financing, business acumen, and other non-hammer swinging activities. Together I'd say we are a good pair. He and I have discussed some payment structures such as his hourly rate or a cost-plus structure. But, I thought about making him an equity partner on every deal. I think this would provide us with an equal sense of urgency to complete a project and get a SFH back on the market quicker.

Any thoughts on a split percentage?  90-10?  80-20?

Thank in advance on any advice out there.

Mike

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