Posted by Jon Richards on March 23, 2001 at 19:40:21:
Mike:
#1: Any agreement must in writing #2: Partnerships are difficult, if things work out you feel you did not need the partner; it they fail you tend to blame the partner. Be careful. #3: I would offer the partner a percent return rather than any involvement in what you are doing. Or give him 20% of any profit on any deal.
In short, I would make him a worker, not a partner. Give him fair compensation when you make money.
I hope someone can give me some ideas. I have friend that live’s about three hours from me in an area that is full of Lonnie type deals. Here is my question, if I supply the funds and he does the leg work (we both want to build portfolio’s via owner financing) how should the percentage be structured? I know that some of the answers will be “up to you”, but I would like any other input/expierence’s that is out there. Thanks for your time.
Mike