We are attempting to structure a deal with another partner where we are contributing the capital and finding the deals and the partner does design/project management/rehab. Wondering what the typical split is in this market, or if investors are even offering deals to partners who don’t contribute equity. Thanks.
Sara,
It has been fairly typical to split net profits 50/50 between the money partner and the sweat equity partner. I’m not aware of a “typical” split between partners where on is providing both capital & sweat equity and the other just sweat equity. I would imagine determining what is fair would need to be decided on a case by case basis since rehab can vary greatly between properties.