Limited Partnership as a Mentor

[Faisal Sami]

Dear friends Having had some success over the years investing in more than 20 multi family properties and selling a cash flowing real estate portfolio for a nice profit, I have been approached by a newer real estate investor and proposed that we invest in a property together with the new investor putting up all of the money and me bringing the advice, the expertise and the mentoring. After discussing with my attorney the proposed structure we came up with is the limited partnership where the cash investor is the "general partner" since he has all the cash invested (and providing him the greatest safety and peace of mind) and myself as the limited partner since I will be providing advice, guidance and coaching. My question is this: What is a "fair" split between the cash investor and myself in a limited partnership arrangement in favor of the cash investor as below ? 50/50? 60/40? 70/30 ? Other ? Any advice or examples of similar deals will be greatly appreciated.