Posted by John Corey on June 18, 2007 at 16:30:15:
There is no specific formula.
See if the two of you can agree something that works. Try to think
about what would be fair if the situation was reversed.
If someone did all the work and someone else put up all the capital
then a 50/50 split is not uncommon. No reason that 50/50 is right. It
just gets done that way in many cases. It could be that you get 90% of
of 1/2 and then split the other half 50/50. The logic is the money
person gets half (that is the two of you so 25% each). The labour side
gets half and that is split based on who did the work - 10/90 in this
Best that you find a way to agree without upsetting anyone. Call it a
tax for not being smarter before you started the project. A paid
education in how not to manage the division of labour and profits. Get
the project finished and move on to the next one. Keep the karma in
good standing as you will need friends for future deals.
Partnership question - Posted by Tim
Posted by Tim on June 18, 2007 at 11:35:54:
Hello everybody, and thanks in advance for your inputs.
A friend and I bought a foreclosure / rehab house several weeks ago. We had originally agreed to split everything 50-50, expenses, rent profit, etc. We also agreed that we’d put in roughly the same time for repairs.
Now, several weeks into it, I’ve put in about 90% of the work. We both agree that I should be compensated for this inequity, but we didn’t really anticipate it so we had no agreement ahead of time. We both want to find a solution that is fair, but we’re having trouble coming up with a dollar amount to value my labor.
I know this type of situation must occur countless times in partnerships, and I wanted to get some suggestions as to how we can value the work I have done. For example, water heater installation, lots of plumbing repairs, electrical work, drywall repairs, cleaning, etc. Are there any websites that could help me? Has anybody had a similar experience?
Any suggestions would be greatly appreciated.