Rasmey Rentals » profits http://www.ramsey-rentals.com Thu, 09 Sep 2010 13:22:09 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 What is a good formula for splitting profits on a rental property investment? http://www.ramsey-rentals.com/what-is-a-good-formula-for-splitting-profits-on-a-rental-property-investment/ http://www.ramsey-rentals.com/what-is-a-good-formula-for-splitting-profits-on-a-rental-property-investment/#comments Mon, 25 Jan 2010 20:23:00 +0000 Admin http://www.ramsey-rentals.com/what-is-a-good-formula-for-splitting-profits-on-a-rental-property-investment/ I am involved in a 3-way investment on a rental property and we are being forced to sell because of a DOT project. Our profit on this property will be approximately $75,000 and we need to figure out how to split this up. Being close family members, we weren’t too concerned about figuring this out we bought the property.

I would really appreciate any suggestions from real estate investors experienced with partnership investments like this.

Here are the figures for the capital and work/mangement invested by each party.

Investor #1:
Invested $150, 000 by taking out a regular home loan.
Lived at the property and payed “rent”.
Did 85% of the maintenance, improvements and rental property management.

Investor #2:
Invested $75,000 from a home equity line of credit.
Did 0% of the maintenance, improvements and rental property management.

Investor #3:
Invested $25,000 from a home equity line of credit.
Did 15% of the maintenance, improvements and rental property management.

Thank you!

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