Splitting Profits with Partner - Posted by Ericka

Posted by DaveD (WI) on November 11, 2005 at 10:16:59:

Most deals require a combination of talents: the dealmaker to get into the deal, the financier (downpayment and credit arranger), the manager (who oversees a medium to long term means to extract profit, if needed) and a dealmaker to get everyone back out of the deal and profit.

What are your talents, and what do you expect a partner to bring that you don’t have?

If it just a matter of not being sure of yourself, going the partner route is a very expensive means to do a deal. If you know the seller, why not just sit down with them and work something out? If the owner is elderly, chances are they are looking less for cash today, and more for a good steward of their equity. Pay them in pieces.

HTH, Dave

Splitting Profits with Partner - Posted by Ericka

Posted by Ericka on November 11, 2005 at 09:29:04:

Here is the situation:

I am an inexperienced investor and have an opportunity to meet with an experienced investor about a property that I found, but haven’t talked to the owner yet. This investor offered to possibly partner with me on the deal. It is a multi-unit building and I have some limited history of the owner of the building(I knew the owner as a child, but don’t know if she would even remember me). I have limited funds, but good credit. The investor offered to let me watch them make the deal or work with me on the deal whatever that deal would be. What is the normal splitting of profits between partners? I need some idea before I call them back with the particulars to recognize if I am getting a good deal with this future partnership agreement.

Thanks in advance for your help,


Re: Splitting Profits with Partner - Posted by IB (NJ)

Posted by IB (NJ) on November 12, 2005 at 01:39:43:

If I was the exp. investor and you weren’t bring anything to the table except the’heads up’ on a property, I’d pay you a finder’s fee of say $3-5k.

Negotiate with the owner, at least open her up to selling and maybe we can 50/50.